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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
- This year, most of the central banks in the EM world have kept their policy rates steady in order to maintain financial conditions as loose as possible and therefore stimulate the economic recovery.
- Mexico and Indonesia actually cut their policy rate by 25bps to lift up growth expectations in the coming quarters.
- However, the chart below shows that growing concerns over rising inflationary pressures have pushed three central banks to hike rates in 2021, Russia and Brazil by 75bps and Turkey by 200bps, respectively (which we refer as the 'Fragile Three' for 2021).
- The rise in economic and political uncertainty have been weighing on the RUB, BRL and TRY (relative to major crosses), which has been accentuating inflation risks in the past few months.
- We saw recently that the CBR adjusted its year-end inflation forecast notably higher, from 3.7%/4.2% interval to 4.7%/5.2%.
- Inflation is also expected to reach 18%/19% in Turkey in the short term.
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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