Money Flows to Emerging World at Pace Unseen Since Taper Tantrum

Capital inflows to emerging markets are growing at the fastest pace in three years as increasing odds that U.S. interest rates will remain lower for longer and stimulus measures from central banks in Europe and Japan make riskier assets more attractive.

Investors put $6.5 billion to developing equity and debt funds in the seven days through July 15, according to the Institute of International Finance based on the data from seven countries the agency tracks. It was the most since a $7.4 billion weekly inflow in September 2013, when the U.S. Federal Reserve’s surprise delay of the reduction of a bond-buying program triggered what is commonly referred to as the “taper tantrum.”