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 dilemma.
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...
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