By Karen Schwartz
Central bank scorecard: Taking a stand
Latin America’s central banks are grappling with slowing growth, falling commodity prices and turning credit cycles – as well as dogged price pressures
Over the past year Latin America’s central
bankers have found themselves, like so many times since the
start of financial crisis, caught on the horns of a
They have faced a delicate balancing act: standing ready to
support their economies if adverse global shocks arise, while
attempting to ensure that monetary policy keeps inflation
expectations in check.
Today, as growth slows across the region – amid
weakening external demand, falling commodity prices and a
turning in local credit cycles – there is a sizeable
risk that a sudden worsening in the global backdrop could cause
a much sharper downturn in Latin America.
Concerns about the fragility of the global economy are
increasingly front and center of the region’s
policy agenda. Despite a respite in August, there remains
widespread anxiety about a possible worsening of the eurozone
crisis in the final quarter of the year, as well as...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.