Highlights of the Interest Rate Map Changes in Emerging Markets
22/9/2018 12:00 am
[rtl]Drawn by monetary tightening policy of major central banks and
capitals / agencies
Since the beginning of this year, the monetary tightening policy of major central banks around the world has overshadowed the interest rate in emerging markets, forcing a number of banks to stay with similar measures.
But added to the pressure from the US interest rate hike, which has increased 5 times since early 2017 and so far, the interest rate ranges from 1.75 percent to 2 percent amid speculation of two further increases in the rest of 2018, the economic situation within emerging markets itself.
At the same time, the European Central Bank kept interest rates at low levels but decided to cut the rate of bond purchases by half (15 billion euros) in the last three months of this year with a halt from 2019; while the Bank of England implemented one increase, Interest rate from 0.50 percent to 0.75 percent, the second increase since 2007.
The strength of the US dollar has also put additional pressure on emerging market assets after gains of 2.6 percent from the beginning of 2018 to the end of September 18.[/rtl]