27 Apr 2015
EM central banks look to the Fed – TDS
FXStreet (Edinburgh) - According to analysts at TD Securities, central banks in the Emerging Markets will remain vigilant on the move by the Fed.
Key Quotes
“Brazil on Wednesday after the FOMC, while Mexico and Russia make their announcements on Thursday”.
“Fed interest rate policy will ultimately have a major impact on monetary policy developments in these countries”.
“However, with the direction of policy in the US and the timing still suggesting a September lift-off with increasing risks of a delayed start, the focus in EM remains on idiosyncratic factors for now”.
“How country-specific these factors can be is illustrated by the fact that this week’s EM rate decisions embrace the whole spectrum of outcomes with a likely cut for the CBR, a likely hike for the BCB, and a hold for Banxico”.
Key Quotes
“Brazil on Wednesday after the FOMC, while Mexico and Russia make their announcements on Thursday”.
“Fed interest rate policy will ultimately have a major impact on monetary policy developments in these countries”.
“However, with the direction of policy in the US and the timing still suggesting a September lift-off with increasing risks of a delayed start, the focus in EM remains on idiosyncratic factors for now”.
“How country-specific these factors can be is illustrated by the fact that this week’s EM rate decisions embrace the whole spectrum of outcomes with a likely cut for the CBR, a likely hike for the BCB, and a hold for Banxico”.