with Marcos Casarin and Gabriel Sterne
June 20, 2022
Latin America was one of the regions most affected by the current wave of imported inflation. And with all five major central banks bound to miss their inflation targets for three years in a row in 2021-23, policy rates have been increased significantly, taking real rates to multi-year highs everywhere. Partly as a result of this abrupt monetary tightening we expect four of the six largest economies in the region to enter technical recessions in the next 12 months.