The sell-off in EM financial markets in the wake of Donald Trump’s victory in the US election has been swift but policymakers in most countries will look through the initial volatility – only central banks in Mexico and (possibly) Turkey are likely to be forced into defensive interest rate hikes over the coming days. Further out, questions still hang over large parts of Mr. Trump’s likely policy agenda, but the big issue for EMs is his approach to trade. Watch out for early noises on China and Mexico.
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