Latin America asks U.S. to consult on monetary policy changes

miércoles 8 de octubre de 2014 15:36 GYT
 

WASHINGTON Oct 8 (Reuters) - Latin American finance ministers expect to be consulted on U.S. monetary policy and hope officials in Washington will consider the impact of abrupt changes on emerging markets, Colombian Finance Minister Mauricio Cardenas said on Wednesday.

"We see recovery of the United States' economy as a stimulus for Latin America. But we also see it as very important that the management of the United States' monetary policy occurs without hiccups, to avoid abrupt changes in the flow of investment and in the cost of financing," Cardenas told reporters on the sidelines of the IMF and World Bank fall meetings.

Emerging markets, including Colombia and Brazil, have benefited from a flood of money away from the world's most developed economies, which slashed interest rates to bolster consumer spending and emerge from the 2007-2009 financial crisis.

With the U.S. Federal Reserve expected to begin raising rock bottom interest rates sometime next year, there are concerns those flows will sharply reverse, hurting investment and undercutting currencies in the region.

"If U.S. monetary policy sparks abrupt changes in the financial markets, the rest of the world economies, particularly emerging markets, may be affected and that will in turn reverberate negatively on the United States," Cardenas said.

He added that U.S. policymakers needed to consult with their counterparts in Latin America on monetary policy changes. "That is part of the message that the finance ministers of Latin America had for the United States."

Cardenas, who spoke after chairing a meeting of finance ministers from the Americas and the Caribbean, said the region expects U.S. economic growth to result in a rise in tourism and remittances to Latin America. (Reporting by Marina Lopes; Editing by Paul Simao)