By Karin Strohecker and Ritvik Carvalho
LONDON, Oct 1 (Reuters) - Central banks in developing
countries have cut rates for 20 straight months, exceeding the
easing cycles sparked by the 2008 financial crisis and in the
wake of the 2010 euro crisis, though the pace of reductions
continued to slow in September.
Interest rate moves by central banks across a group of 37
developing economies showed a net four cuts in September - the
lowest number of reductions since June 2019, Reuters
calculations show. In August, emerging central banks delivered a
net seven cuts.
There are signs that the easing cycle might be running out
of steam.
Turkey delivered a surprise interest rate hike last week -
the first time a central bank in the group raised benchmark
rates since Czech policy makers sprang into action in February.
Hungary's central bank also unexpectedly raised the interest
rate on its one-week deposit tool. "A raft of recent monetary policy decisions – in countries
like Brazil, South Africa, Indonesia, Russia – suggest that EM
central banks are by no means as keen as they used to be to cut
policy rates," said David Lubin, head of emerging market
economics at Citi. "This raises the question of whether we have
reached the end of the rate-cutting cycle."
For an interactive version of the above graphic, click here
https://tmsnrt.rs/3grAEai.
For a FACTBOX on global central bank rate responses to the
coronavirus outbreak, click here: a FACTBOX outlining global economic policy response to
the crisis, including fiscal policy: <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
EM central banks keep cutting rates EM central banks keep
cutting rates https://tmsnrt.rs/2BZNo96
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