The MUFG Global Markets Podcast
Business
EM interest rate hikes and asset price implications: The MUFG Global Markets Podcast
Inflation expectations are rising across the world, and investors are turning apprehensive that a reversal in broad monetary support can pressure risk assets. From an emerging markets perspective, history tells us that hiking cycles normally lead to mixed asset performance, namely, negative EM equity as well as credit returns, above average FX performance and varied economic growth rates.
Ehsan Khoman, Head of Emerging Markets Research (EMEA), contextualises what markets can expect on asset performance stemming from EM rate hikes, drawing from the historical experience of rate hiking cycles to provide direction as to what may be in store for the second half of 2021.
Disclaimer: www.mufgresearch.com (PDF)
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