Monetary policy and challenges for the Americas in 2024

Speech by Mr Alexandre Tombini, BIS Chief Representative for the Americas at the BIS, at the International Monetary Fund Regional Conference, San José, Costa Rica, 29 July 2024. 

As inflation continues to decline, activity remains resilient. The financial system appears to have adjusted smoothly to higher interest rates. The global economy, and in particular the region's economies, seem poised for a smooth landing. We must acknowledge the success of central banks globally, but especially in Latin America. They faced the largest and most sustained rise in global inflation since the 1970s. Vigorous action was taken globally. And it worked. While these developments are welcome, we cannot claim victory yet. The last leg of the inflation decline, "the last mile", may be the most difficult to achieve. In addition, central banks have limited room for manoeuvre to deal with further inflation shocks. This is why monetary policy decisions will have to consider a number of risk factors.