Template-Type: ReDIF-Paper 1.0
Author-Name: Eduardo Amaral
Author-X-Name-First: Eduardo
Author-X-Name-Last: Amaral
Author-Name: Rafael Guerra
Author-X-Name-First: Rafael
Author-X-Name-Last: Guerra
Author-Name: Ilhyock Shim
Author-X-Name-First: Ilhyock
Author-X-Name-Last: Shim
Author-Name: Alexandre Tombini
Author-X-Name-First: Alexandre
Author-X-Name-Last: Tombini
Title: Financial conditions indices in Latin America
Abstract: Global factors shaped financial conditions in Latin America in 2025, with exchange rate appreciations against the US dollar loosening conditions in most countries.
Short-run monetary policy transmission in the region operates through financial conditions. In general, monetary easing leads to looser financial conditions and faster short-term output growth.
Measurement of overall financial conditions depends on the methodologies and assumptions used to construct financial conditions indices (FCIs). Understanding these differences helps central banks to use FCIs as an input to monetary policy.
Length: 8 pages
Creation-Date: 2025-09-29
File-URL: https://www.bis.org/publ/bisbull113.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull113.htm
File-Format: text/html
Number: 113
Handle: RePEc:bis:bisblt:113