Liliana Rojas-Suarez is quoted in Latin Finance about Latin financial markets.
From the article:
Latin financial markets must dig in for an extended period of volatility as policymakers grapple with the fallout- including on local currencies, prices and interest rates- of rising US Treasury yields, leading experts have warned.
Neil Shearing, chief emerging markets economist at Capital Economics in London said the regions is on a "far more stable footing" than it was in 1994, when a sharp hike in US short-term interest rates devastated Latin economies. "This time around they have less foreign currency debt, so there is less worry about currency weakness."
But the possibility that US interest rates could rise faster than expected remains a source of concern. "What worries me is that if the Fed finds itself in a situation where it has to hike interest rates very quickly, then we could have a problem", said Liliana Rojas-Suarez, senior fellow at the Center for Global Development. "Rates could rise much faster than the market is currently pricing in. The market could force it to happen."
Read it here.
