How will emerging markets emerge from inflationary pressures?

Strong US recovery could impact EM

clock • 4 min read
How will emerging markets emerge from inflationary pressures?

The strong US recovery and associated reflation pressures may present challenges for parts of the emerging markets universe. This is most obviously visible in US Treasury and, to a lesser extent, German Bund markets. Here, fears that an overshoot in inflation could trigger a change of course by the US Federal Reserve (Fed) - and, to a lesser extent, the European Central Bank (ECB) - have led to some interest rate volatility and a general rise in real and nominal yields this year.

Our ‘working' base case on this matter is that neither the Fed nor the ECB will move suddenly and that current inflation pressures will likely moderate. Nevertheless, we do see a small but growing...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Emerging markets

Dominic Scriven OBE of Dragon Capital

Vietnam: the ESG investment case

Energy and digital transformation

Dominic Scriven
clock 13 May 2022 • 4 min read
Ritu Vohora of T. Rowe Price

From beverage manufacturers to luxury goods: How pricing power trumps inflation

Valuations matter more than before

Ritu Vohora
clock 12 May 2022 • 4 min read
Xavier Hovasse, head of emerging markets equities at Carmignac

Carmignac's Hovasse: The fate of emerging markets is 'in the hands of Xi Jinping'

Russian invasion 'big blow' to EM

Elliot Gulliver-Needham
clock 11 May 2022 • 2 min read