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Emerging Markets Have Monetary Firepower to Drive World Economy

  • Morgan Stanley sees 13 of 32 EM central banks to ease in 2020
  • Advanced economies show negative real rates; EMs have room
General Economy As India's Growth to Top China For First Time Since 1999, IMF Says
Photographer: Dhiraj Singh/Bloomberg

Emerging-economy central banks from India to Brazil still enjoy the firepower to shore up the global economy as their peers from developed markets take to the sidelines.

While policy makers at the Federal Reserve and European Central Bank are seemingly set to keep interest rates on hold, many of their developing nation counterparts have room to cut further. That should help support the world economy amid its weakest expansion in a decade.