June 4, 2013
An end to ultra-loose monetary policies in the world’s largest economies risks stoking inflation in Latin America as currencies depreciate in a “disorderly” manner, Peru’s former prime minister warned Tuesday.
Pedro Pablo Kuczynski, partner at Rohatyn Group and an early candidate for 2016 presidential elections, said the Andean region faced a “huge problem” as monetary stimulus is unwound in the developed world.
“We’ll have huge reverse pressure on exchange rates and that will lead to inflation,” he told an audience at LatinFinance’s Andean Forum in Lima. “I’ve always supported strong intervention by the central bank, but the problem is that the exchange rate is reversing in a disorderly
Inflation and disorderly exchange rate moves threaten Andean economies as the developed world ends ultra-loose monetary policies, warns Pedro Pablo Kuczynski, former Peruvian prime minister