Skip to main content

Most EM central banks in easing mode

Despite the focus in advanced economies on the timing of monetary policy tightening, the majority of EMs remain in easing mode. More EM central banks cut their policy interest rates than raised them for the fourth consecutive month in July. The bulk of easing continues to be concentrated in Latin America – central banks in Brazil, Colombia and Peru have all cut rates over the past couple of months. This reflects the unwinding of previous inflation shocks caused by sharp currency falls. But central banks in India, South Africa and Indonesia have also eased monetary policy over the past few weeks and the trend towards rate cuts is likely to spread to other EMs in the coming months. Policymakers in Russia paused their easing cycle in July, but we expect them to resume cutting interest rates soon. Even in Turkey and Egypt, where central banks had until recently been tightening policy, falling inflation looks set to bring easing on to the agenda before year-end.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access