Central bank scorecard: Steady hand

Central bank scorecard: Steady hand

Economy & Policy Corporate & Sovereign Strategy

By Karen SchwartzCentral banks in Latin America have not had it easy over the past twelve months. For the first half of that period, authorities took action against rampant capital inflows, sharply appreciating currencies and, in some cases, overheating economies. US Federal Reserve chairman Ben Bernanke ended that when he hinted in May that the central bank might roll back its bond buying program before year-end. This triggered a dramatic sell-off in global emerging markets. For policymakers, the risk framework was suddenly flipped. Latin currencies weakened sharply. This coincided with weaker growth in China, which was already weighing on commodity prices and GDP projections, especiall

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