KBRA Releases Research – EM Monetary Policy Supports Recovery but Macro Uncertainties Persist

Kroll Bond Rating Agency (KBRA) releases research on the state of interest rate policy in emerging markets (EM) and how it currently supports recovery during the pandemic.

In this report, KBRA briefly reviews the status of interest rate policy across many advanced industrial (AI) and EM economies, and notes that among EMs to have already hiked rates, most still are benefiting from a lower rate environment compared to pre-pandemic. The report also discusses the continued uncertainties to erupt over the delta variant, the timing of rate hikes in AI economies (especially by the U.S. Federal Reserve Bank, and a looming China slowdown) that could derail recovery. Further, a U.S. Fed asset purchase taper, which could happen by year-end, would likely prompt further policy rate adjustments across EM economies.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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