Latin America News
LAST UPDATE: September 24, 2025
Brazil Central Bank Backs High Rates Despite Inflation Progress
Brazil’s central bank has decided to maintain high interest rates, a hawkish stance that prioritizes inflation control despite recent progress in bringing down price growth. The move signals a cautious approach to monetary policy, with the bank remaining vigilant against inflation risks.
Insight
The central bank’s decision underscores its commitment to its inflation-targeting mandate, even at the potential cost of slower economic growth. It shows that policymakers are more concerned about the risk of inflation re-accelerating than about the short-term impact of high rates on the economy.
Lula tells UN that attacks on Brazilian judiciary unacceptable
Brazilian President Luiz Inácio Lula da Silva told the UN that attacks on Brazil’s judiciary system are unacceptable. This statement comes amid ongoing political tensions and criticisms of the country’s legal institutions.
Insight
Lula’s remarks at the UN underscore the importance of defending democratic institutions, particularly the judiciary, from political interference. It serves as a public declaration of his government’s commitment to the rule of law and a message to both domestic and international audiences.
Trump Backs Milei and Dismisses Need for ‘Bailout’ in Argentina
President Donald Trump has expressed support for Argentine President Javier Milei and stated that Argentina does not need a “bailout.” The comments were made as the two leaders met, signaling a potential shift in the US’s approach to Argentina’s economic challenges.
Insight
Trump’s remarks suggest a preference for private sector-led solutions over traditional, internationally-funded bailouts for Argentina. This aligns with his past populist rhetoric and could influence future US policy towards the country.
World Bank says will accelerate support for Argentina
The World Bank has announced it will accelerate its support for Argentina, providing up to $4 billion in a combination of public and private financing. This funding is aimed at supporting Argentina’s economic reform agenda, with a focus on key sectors like mining and energy.
Insight
This acceleration of support from a major international financial institution signals a vote of confidence in Argentina’s new government and its reform plans. It shows that global organizations are willing to back market-friendly policies, which could help stabilize the country’s economy.
Argentina’s economic activity seen up 3.3% July, a sharp slowdown
Economic activity in Argentina is projected to have grown by 3.3% in July, a significant slowdown compared to previous months. This deceleration suggests that the country’s economic reforms and high interest rates are beginning to have a contractionary effect.
Insight
The sharp slowdown in economic activity is a sign that the government’s tough measures to combat inflation and stabilize the economy are having an impact. While this is a necessary step in the reform process, it also poses a challenge to maintain public support for a period of economic pain.
Argentina bonds, peso extend rally with eyes on US support details
Argentine bonds and the peso have extended their rally, a response to a pledge of financial support from the US. The US Treasury Secretary has stated that the US is ready to provide assistance to stabilize Argentina’s economy, leading to a surge in investor confidence.
Insight
The swift pledge of support from the US highlights the geopolitical significance of Argentina’s stability. The market’s positive reaction shows that a clear signal of backing from a major global power can rapidly restore confidence in a volatile economic environment.
Milei’s Peso Is 20% Overvalued and Fragile, Analysts Say
According to analysts, the Argentine peso is estimated to be 20% overvalued, making it fragile despite recent market rallies. This overvaluation is a concern as it could lead to another period of currency instability, undermining the government’s economic reforms.
Insight
The analyst’s assessment suggests that the recent market confidence, driven by US support, may be a temporary reprieve. The underlying economic fundamentals, as seen by the overvalued peso, indicate that Argentina still faces significant challenges in achieving long-term currency stability.
Argentina Is Losing Faith in Milei’s Free-Market Revolution
A WSJ report suggests that Argentinians are losing faith in President Milei’s free-market reforms. Public approval has reportedly dropped below 40% amid a stock market downturn and concerns that his agenda is stalling after a significant electoral loss in a key province.
Insight
The report points to the political fragility of implementing “shock therapy” economic reforms. While Milei’s policies have had some success in curbing inflation, the economic pain and political setbacks are eroding public support, putting the long-term viability of his revolution at risk.
Bolivia’s Paz Vows to Restore US Ties, Secure Fuel Supplies
The newly elected President of Bolivia, Paz, has vowed to restore ties with the US and secure the country’s fuel supplies. The pledges aim to mend diplomatic relations and address domestic shortages, which have been a source of instability.
Insight
This indicates a potential shift in Bolivia’s foreign policy and a pragmatic approach to addressing a critical domestic issue. The focus on restoring ties with the US and securing fuel suggests that the new government is prioritizing economic stability and international cooperation.
