China rate cuts on the cards says Insynergy New World manager

Noel O'Halloran, head of the team that manages the Insynergy New World Equity Income fund, is anticipating interest rate cuts in major emerging markets as the economic cycle begins to turn.

Emerging markets have been battling rising inflation over the past year but Brazil surprised markets last month by cutting interest rates at a time when inflation is still rising. Brazilian headline inflation reached a 13-month high of 7.23% in August, the same month the country's central bank cut its base rate from 12.5% to 12%. O'Halloran, CIO at Kleinwort Benson Investors Dublin, which manages the New World fund for Insynergy, said both India and China could cut rates within the next six months as inflation neared a peak. China has hiked reserve ratio requirements 12 times since 20...