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Diverging Rate Paths Force Reshuffle in Emerging-Market Bets

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.
Indonesia (LOCATION) Hungary (LOCATION) Poland (LOCATION) US (LOCATION) Japan (LOCATION) Brazil (LOCATION) Chile (LOCATION)
Originally published by Bloomberg Markets Read original →