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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- As inflation pressures continue to intensify in the EM market (Citi EM inflation surprise index sitting at its highest level since Sep 2008), rates markets have been pricing in a tightening cycle in 7 EM economies within the next 12 months (including Brazil and Russia that have already start hiking in 2021).
- Market average of 75bps of rate hikes priced in in Mexico, South Africa, Colombia, Czech Republic and Indonesia.
- According to GS analysts, EM assets tend to underperform when central banks 'over deliver'(50bps or more than is priced in by markets); Mexico, South Africa and Russia expected to be resilient to rate hikes.
- We previously saw that the rise in inflationary pressures combined with the currency weakness have already pushed three central banks to raise rates this year, Russia by 75bps, Brazil by 150bps and Turkey by 200bps (chart below).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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