Olivier Desbarres

Asymmetric Risk to Emerging Market Monetary Policy

• Emerging market central banks have cut real policy interest rates this year, in response to weaker global growth and inflation expectations.

• But this follows a period of policy tightening and real policy rates remain quite high by historical standards.

• If the Fed doesn’t hike on 17^th September, this could pave the way for further monetary policy easing in emerging markets