US Federal Reserve may hike interest rates again, influencing the whole world. Capital from emerging markets is migrating to the US. The currencies of the emerging markets are losing value.
The ECB has kept its benchmark refinancing rate at zero, as it weighs up risks to the economy from Brexit and trade disputes. ECB chief Mario Draghi said the eurozone's current economic indicators were "weak."
Federal Reserve policymakers have raised the key interest rate one more time, thus drawing the ire of the US president. He had insisted a renewed rate hike would be bad, considering global economic uncertainties.
Some emerging economies, including Turkey and Argentina, could be forced to cut spending to bridge yawning deficits. As interest rates continue to rise in the US and Europe, there is no respite for them any time soon.
Emerging market economies and their currencies have come under severe stress in recent weeks, as rising US interest rates and trade fears prompt investors worldwide to shun their assets and move money to the US.
© 2019 Deutsche Welle |
Legal notice |
| Mobile version