DFEV - EM Central Banks: More Easing In The Cards?

2024-02-15 23:39:00 ET

Summary

• Emerging markets have taken solace in the view that the U.S. hiking cycle is over, helping deliver strong returns in 2023.
• Slowing global inflation has been due to sharply lower core goods inflation, while service prices have remained stickier.
• EM local currency bonds have historically performed well into and during Fed easing cycles.

By Sukhjeet Reehal

The sunset of Fed tightening provides room for further rate cuts in emerging markets. ...

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