Most central banks in Latin America are accomplished institutions. In a region battered historically with chronic inflation and even hyperinflation, most central banks conquered price stability in the early 2000s—with the support of sound fiscal policies. From then on, central banks’ institutional strength and the associated credibility of monetary policy have been tested. Based on stronger macroeconomic fundamentals than in the past, on buffering mechanisms put in place over several years, and on the public trust on central bank independence, monetary policy has played a key role in weathering exogenous shocks. Amid large reversals of capital inflows, and in a clear break from the past, central banks implemented countercyclical monetary policy to stem the adverse effects of the Great Financial Crisis (GFC) in 2008. More recently, to cushion the profound impact on economic activity of the COVID pandemic, central banks aggressively cut interest rates and, in several countries, provided ample liquidity to help firms continue operating.2 Today, building on their monetary policy independence, central banks have reacted quickly, raising interest rates to fight rising inflation stemming from pent-up demand fueled by previous stimulus, from lingering pandemic disruptions, and from the effects of the war in Ukraine.