The market expects interest rates to remain stable given the persistence of inflation. How it impacts.
Jerome Powell president of the Federal Reserve (Fed), made it clear that in the US interest rates will remain high“for longer than expected.” A tough monetary context that has a negative impact on emerging markets. At least that’s what they believe since International Monetary Fund (IMF).
“It is a much more serious problem for countries where the impact of high interest rates in the United States is most profound: in many emerging market economies,” he said. Kristalina Georgievamanaging director of the organization in an interview with ‘CNBC’.
Based on Georgieva’s explanations, an environment characterized by high rates in the US is traditionally a bad news for emerging markets, given that makes your debts more expensive, often quoted in Dollars Americans. It can also trigger capital outflows, as investors opt for better returns, and lead to much tighter financial conditions.
Key market data this week
At the macroeconomic level, the week will be marked by the meeting of monetary policy of the Federal Reserve, that on Wednesday it will publish a statement on its interest rates at the close of the meeting.
The market expects interest rates to remain stable given the persistence of inflation.
Official employment data in the United States for April will be released on Friday.
This week there will also be many results from companies, such as Amazon on Tuesday and Apple on Thursday, both at the close of the markets.
Source: Ambito
