Latin America Sees Low-Rate Dreams Crumble and Political Woes Rise
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Latin American central bankers are warning that delays to the Federal Reserve's monetary easing pose a threat to the region's economic recovery. The region led the world in interest rate cuts but is now lagging behind the developed world in terms of growth. Central banks in countries such as Brazil and Chile are signaling that the floor to their rate cuts could come sooner, while others like Colombia and Mexico are ruling out hastier cuts. The narrowing rate differentials with the US are causing currencies to weaken, which in turn raises import costs and fuels inflation. The delay in rate cuts could lead to political tension in the region.

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https://www.bloomberg.com/news/articles/2024-04-19/latin-america-sees-low-rate-dreams-crumble-political-woes-rise