End of the EM tightening cycle creeping closer

While DM central banks are currently raising interest rates in earnest, the past week has brought signs that tightening cycles are now nearing an end in parts of the emerging world. Indeed, with interest rates now well above neutral in much of Emerging Europe and Latin America, policymakers in most countries in these regions will probably ease off the brakes by October. Within Asia, low inflation has allowed policymakers to start tightening later and cycles will end later too, with rates at much lower levels.