Nearing the bottom

Recent comments from policymakers suggest that, while growth concerns continue to dominate, interest rates are nearing their bottom. Accordingly, attention is starting to turn to when rates might be hiked once again. While Latin America is certainly much better positioned to weather the current global recession than in the past, we believe the pace of recovery is likely to disappoint. As a result, the tightening cycle is unlikely to begin much before the end of next year.