Central banks in Latin America can certainly not be accused of remaining passive in the face of rising price pressures. They were the first to begin hiking interest rates towards the end of last year, and since then have engaged in by far the most aggressive monetary tightening of any world region. Our analysts forecast the average policy rate in Latin America to rise from 5.7% at end-2020 to 15.5% at end-2022, a nearly 10 percentage point increase. In contrast, over the same period, interest rates in G7…