MNI BRIEF: Too Early To Claim Latam Inflation Victory- Tombini
Alexandre Tombini, Chief Representative of the BIS, speaks in MNI EM Connect event.
MNI (BRASILIA) - It is too early to claim victory against inflation in Latin America, with the "last mile" the hardest to tackle, the Bank for International Settlements’s chief representative for the Americas and former Central Bank of Brazil governor Alexandre Tombini told an MNI EM Connect event on Monday.
"From my perspective, we cannot claim victory yet. The last stretch of the convergence to the inflation target, the 'last mile', may be the hardest of all," he said.
While Latin American economies have recovered more quickly than expected, "the bad news is that inflation rose to levels not seen in decades,” he said.
"Central banks around the globe reacted by raising policy rates, which has been successful," he said, noting that there was public confidence that central banks were committed to bringing inflation back to target. (See MNI: Latam Policymakers Concerned About US Elections at IMF)