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Rates Mantle Passes to S. Africa as Central Banks Fight EM Bears

  • South Africa may raise rates, with Brazil on hold, SEB says
  • Goldman would use lira stability to bet on other high-yielders
Updated on

Investors are counting on central-bank decisions in some of the hardest-hit emerging markets this week for an extended reprieve from the recent rout.

After Turkey and Russia surprised traders last week with more hawkish-than-anticipated policy moves, there’s an outside chance the South African Reserve Bank may follow in their footsteps by raising interest rates on Thursday after the rand slumped to a two-year low. Brazil’s policy makers decide rates Wednesday following a month in which the real was the worst-performing developing-nation currency after Argentina’s peso.