Business & Finance
Diverging Rate Paths Force Reshuffle in Emerging-Market Bets
Key Points
Diverging Rate Paths Force Reshuffle in Emerging-Market Bets A growing divergence in interest-rate outlooks is forcing emerging-market investors to reshuffle bets. Within the past week, Indonesia’s central bank delivered an off-cycle rate hike to reverse a market selloff and support its currency, while policymakers in Hungary and Poland are considering lowering borrowing costs after inflation fell short of estimates. Traders — who are also bracing for rate decisions in the US and Japan —...
Diverging Rate Paths Force Reshuffle in Emerging-Market Bets
A growing divergence in interest-rate outlooks is forcing emerging-market investors to reshuffle bets.
Within the past week, Indonesia’s central bank delivered an off-cycle rate hike to reverse a market selloff and support its currency, while policymakers in Hungary and Poland are considering lowering borrowing costs after inflation fell short of estimates. Traders — who are also bracing for rate decisions in the US and Japan — expect Brazil to cut and Chile to keep key rates unchanged in the coming days.