|
|
Article: Looking at real interest rates, monetary policy stance looks loose in Asia compared to Latin America and emerging Europe
- Article from:
- Emerging Markets Economic Outlook
- Article date:
- July 1, 2008
- Author:
CopyrightCopyright Oxford Economic Forecasting Summer 2008. Provided by ProQuest LLC. (Hide copyright information)
|
The response of emerging market central banks to the widespread pick-up in inflation since the middle of 2007 has been quite varied; while some banks have raised interest rates significantly over the last year, others - particularly in Asia - have barely shifted theirs (and the key rate in the Philippines is still below the level of last year despite recent hikes). Of course, interest rates are not just influenced by the latest trends in inflation but also countries' positions in their own economic cycles and, to varying degrees, developments in exchange rates and US interest rates. In addition, how much a country's inflation rate has been driven up by the global phenomena of surging food ...