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10-01-2022, 04:02 PM
IMF warns emerging economies could face turbulence when Fed raises interest rates – business live
Rolling coverage of the latest economic and financial newsEmerging economies must prepare for U.S. interest rate hikes, IMF saysFederal Reserve could rattle financial markets by tightening policySpillovers could cause capital outflows and currency depreciationGood morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Turbulence could be approaching as the US central bank prepares to wind back its massive stimulus programme, and emerging economies would be in the front line.Broad-based US wage inflation or sustained supply bottlenecks could boost prices more than anticipated and fuel expectations for more rapid inflation. Faster Fed rate increases in response could rattle financial markets and tighten financial conditions globally.These developments could come with a slowing of US demand and trade and may lead to capital outflows and currency depreciation in emerging markets. In recent months, emerging markets with high public and private debt, foreign exchange exposures, and lower current-account balances saw already larger movements of their currencies relative to the US dollar.The combination of slower growth and elevated vulnerabilities could create adverse feedback loops for such economies.For countries where corporate debt and bad loans were high even before the pandemic, some weaker banks and nonbank lenders may face solvency concerns if financing becomes difficult. Resolution regimes should be readied. Continue reading...
https://clck.ru/ahdEh
#Business #Economics #Stock_markets #FTSE #International_Monetary_Fund_(IMF)
Rolling coverage of the latest economic and financial newsEmerging economies must prepare for U.S. interest rate hikes, IMF saysFederal Reserve could rattle financial markets by tightening policySpillovers could cause capital outflows and currency depreciationGood morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Turbulence could be approaching as the US central bank prepares to wind back its massive stimulus programme, and emerging economies would be in the front line.Broad-based US wage inflation or sustained supply bottlenecks could boost prices more than anticipated and fuel expectations for more rapid inflation. Faster Fed rate increases in response could rattle financial markets and tighten financial conditions globally.These developments could come with a slowing of US demand and trade and may lead to capital outflows and currency depreciation in emerging markets. In recent months, emerging markets with high public and private debt, foreign exchange exposures, and lower current-account balances saw already larger movements of their currencies relative to the US dollar.The combination of slower growth and elevated vulnerabilities could create adverse feedback loops for such economies.For countries where corporate debt and bad loans were high even before the pandemic, some weaker banks and nonbank lenders may face solvency concerns if financing becomes difficult. Resolution regimes should be readied. Continue reading...
https://clck.ru/ahdEh
#Business #Economics #Stock_markets #FTSE #International_Monetary_Fund_(IMF)
