News Snapshot:
Emerging market economies and low-income countries should initiate swift domestic policy responses to minimise the effects of tightening US monetary policy. This year, three significant external headwinds for these countries are: the tightening of monetary policy in the United States and other advanced economies; China’s slowing growth; and ongoing geopolitical tensions (especially US-China, US-Iran and Ukraine-Russia).The tapering of the Fed’s asset-purchase program is the first significant step toward normalising its ultra-loose monetary policy.As the Fed sets the tone for global monetary policy, other systemically important central banks will follow suit.This time, the QT process is expected to be swifter as...
