Schwab Says China to Tighten After Brazil Raises Rates

Faster inflation will prompt Brazil to be the first emerging market to raise interest rates before the end of this year and lead China to also tighten monetary policy, according to Charles Schwab Corp.’s Michelle Gibley.

“Inflation is stubbornly high in some of the larger countries, Brazil in particular,” Gibley, director of international research at San Francisco-based Charles Schwab, which has $2.04 trillion in assets, said in a phone interview. “There’s potential they could be the first to start tightening. In China, we’re also seeing the central bank somewhat concerned about inflation. The next move is probably more likely to be tightening than an easing move.”