Emerging Markets' Central Banks Stayed In Tightening Mode Last Month: Capital Econ

More emerging markets’ central banks raised policy interest rates rather than cut them in January, with rate hikes concentrated among net commodity exporters, notes Capital Economics. Neil Shearing and team highlight in their Feb. 2016 report “Growing divergence among EMs” that aggregate EM growth has continued to disappoint in recent months. More raises than cuts by emerging markets’ central banks Tracking monetary policy, Shearing and colleagues point out that their EM interest rate diffusion index indicates that more emerging markets raised policy interest rates than cut them in January. The analysts highlight that the plunge in commodity prices has weighed on the currencies…