BUENOS AIRES, May 23 (Reuters) - South American central banks expect inflation to remain under control in the region although it is necessary to maintain “prudent awareness,” their chiefs said in a joint statement after a meeting in Buenos Aires on Friday.
Central bank presidents from ten South American countries said they expected sustained growth in most of the region’s economies in 2014.
“We expect inflation to remain under control in the region, although it remains important to maintain an attitude of prudent awareness given persistent international uncertainty and a certain volatility in the prices of basic goods,” they said.
The bank chiefs said South American countries were well prepared to confront eventual external shocks such as those that might arise from the U.S. Federal Reserve’s tapering of economic stimulus.
“The low levels of indebtedness and an adequate level of international reserves contribute to affronting possible external shocks with greater efficiency,” they said, noting they would meet again in the second half of the year in Lima.
The economies of Latin America and the Caribbean will grow less this year than previously forecast, hurt by lower-than-expected dynamism in top economies Brazil and Mexico, the United Nations’ economic body for Latin America said last month.
Global market uncertainty will continue to weigh on the region, which depends heavily on exports of oil, metals and grains, it said. (Reporting By Sarah Marsh; Editing by Diane Craft)