IMF Says Inflation Remains Concern In Latin America, Central Banks May Have To Raise Rates

WASHINGTON (UrduPoint News / Sputnik - 21st October, 2021) Inflation continues to be a concern in Latin America and central banks in the region may have to act decisively to contain inflation expectations, International Monetary Fund (IMF) Western Hemisphere Department Acting Director Nigel Chalk said on Thursday.

"Inflation remains a concern in the region," Chalk said during a press briefing.

The central banks were able to solve the situation by increasing investment and credibility, he said.

"I think this will really help in managing both inflation and inflation expectations," Chalk said.

The new inflation expectations and the challenges associated with them may prompt central banks to impose higher interest rates and tighten financial conditions, he added.