The slump in commodity prices over the past year has meant central banks in net commodity exporting and importing countries have continued to follow different paths. Despite the hit to growth from lower export revenues, policymakers in big commodity exporting countries, mostly in Latin America and Africa, have typically responded to the slump in commodity prices and subsequent downward pressure on their currencies by hiking interest rates. In contrast, in net commodity importing EMs (mostly in Emerging Asia and Emerging Europe), where currencies have held up fairly well, central banks have been able to take advantage of the slump in commodity prices by lowering interest rates.
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