Falling inflation and smaller interest rate rises in the US and other advanced economies hold out the hope of a rebound for emerging markets, according to analysts.
Developing countries have suffered this year under a toxic combination of rising interest rates, a strong US dollar, soaring food and fuel prices and other disruptions caused by the pandemic and Russia’s invasion of Ukraine. As some of those conditions start to ease, the prospects for economic growth should improve, analysts say.
Wednesday’s decision by the US Federal Reserve to raise its policy rate by 0.5 percentage points after four straight rises of 0.75 ppts will be welcomed by many policymakers as the start of that process.