EM central banks keep up the inflation fight

The broad message from the recent spate of EM central bank meetings is that policymakers are still focussed on reining in inflation even as the global banking turmoil has led to a shift down in interest rate expectations. We think several EM central banks will be cutting rates from later this year, but rates will remain well above their neutral level and higher than most analysts currently anticipate in Emerging Europe and Latin America. Asia is the exception; rate cuts there will be more aggressive than expected.

EM Drop-In (6th Apr.): Our latest EM online briefing is all about the risks around the recent bank turmoil, including potential economic spill-overs and the state of EM bank balance sheets. Register now.