Emerging Markets Caught in Flux as Central Banks Walk Tightrope
- More pain may be in store for sovereign fixed income: BBVA
- Mexico, South Africa, Thailand are all expected to hold rates
Commuters ride the Bus Rapid Transit (BRT) system in Rio de Janeiro, Brazil, on March 18.
Photographer: Andre Coelho/BloombergThis article is for subscribers only.
Emerging markets may be about to enter a fresh period of volatility as central banks struggle to hold inflation in check while keeping the growth fires burning.
Though the Federal Reserve last week indicated it’s in no hurry to raise interest rates -- triggering further gains in the dollar and U.S. Treasury yields at the expense of risk assets -- hikes in borrowing costs in Russia, Turkey and Brazil underscored the dilemma. Policy makers in Thailand, South Africa and Mexico are among those meeting to decide rates this week.