Are further EM rate hikes on the cards?

The fall in oil prices has eased pressure on EM central banks to tighten monetary policy. But the latest CPI data show that inflation is not just being pushed up by energy prices; other components are accelerating too. Historically, these conditions would suggest that the bias among EM central banks will remain towards tightening, albeit with wide variations at a country and regional level. The case for hikes is more compelling in much of Asia and parts of Latin America, and less so in Central Europe.