The consequences for Latin America of the historic rise in rates in the United States

  • Cristina J. Orgaz @cjorgaz
  • BBC News World

United States Federal Reserve

image source, Getty Images

Caption,

The US Federal Reserve announced in June the biggest interest rate hike in almost 30 years.

The last time the US Federal Reserve raised interest rates as aggressively as we are seeing these months, the IMF had to bail out Mexico.

The rest of the Latin American economies did not fare much better.

Because when the Central Bank presses, the region suffocates.

Experts predict that now it will not be any different and each economy will feel differently the sharp rise in interest rates by the Federal Reserve, which in just 3 months increased the reference rate to a range between 1.5% and 1.75%.

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