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How far are we through the EM tightening cycle?

Tightening cycles in Latin America and Emerging Europe are already at an advanced stage. Some 70-80% of the likely rate hikes in their cycles have already been delivered and policymakers will bring these to an end before the end of the year. But inflation concerns mean that interest rates in these regions will remain above their neutral levels for some time. In contrast, low inflation has allowed central banks in Asia to raise rates more slowly and the policy stance will remain more accommodative than elsewhere. EM Drop-In (Thurs, 7th July): Join our economists for their regular monthly briefing on the hot stories in EMs – and those that aren’t getting the attention they deserve. In this 20-minute session, topics will include the outlook for EM FX markets after the recent sell-offs. Register now.

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