4 Min Read
LONDON, April 22 (Reuters) - Russia’s central bank will meet on Friday to set interest rates with more than one third of analysts now expecting inflation pressures and rising geopolitical tensions to prompt policymakers into a 50 basis point rate hike.
About two thirds of analysts are sticking to earlier forecasts of a 25 bps rate hike to 4.75%.
Here are some key questions being asked by markets:
1/WHAT ROLE WILL GEOPOLITICS PLAY?
Russian markets are no strangers to geopolitics, but Washington’s latest sanctions targeting local sovereign debt send a message about what options are on the table and more might come.
Higher Commodity Prices Could Boost EM Currencies, ETFs
Rising commodity prices could support the developing market outlook, along with related exchange traded funds.
Market strategists believe that emerging market currencies could find support from higher commodity prices, projecting that emerging currencies tied to commodity-exporting countries could outperform the U.S. dollar over the next year, Reuters reports.
“Given our generally bullish outlook on commodity for 2021, we expect commodity exporters to remain supported, in both EM and DM (developed markets), even in the face of a stronger DXY,” FX analysts at Citi said.
“These currencies will also generally be aided by the rates divergence trade.”
3 Min Read
LONDON, May 6 (Reuters) - Emerging market central banks delivered more rate rises than cuts in April, marking the end of an easing cycle that had started in 2019 as central banks, especially in emerging Europe and central Asia, grapple with rising inflation pressures.
Policy makers across a group of 37 central banks in developing economies delivered a net four interest rate hikes in April after recording a net five increases in March.
“Following the most aggressive monetary easing cycle in EM history since the onset of the pandemic, the tide is now turning, with reflation concerns pushing EM central banks into a more hawkish stance on average,” said Ehsan Khoman, head of emerging markets research at MUFG Bank.
4 Min Read
LONDON, April 22 (Reuters) - Russia’s central bank will meet on Friday to set interest rates with more than one third of analysts now expecting inflation pressures and rising geopolitical tensions to prompt policymakers into a 50 basis point rate hike.
About two thirds of analysts are sticking to earlier forecasts of a 25 bps rate hike to 4.75%.
Here are some key questions being asked by markets:
1/WHAT ROLE WILL GEOPOLITICS PLAY?
Russian markets are no strangers to geopolitics, but Washington’s latest sanctions targeting local sovereign debt send a message about what options are on the table and more might come.
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