Record Rate Cuts Leaves Emerging Markets Mulling QE

Jun 2, 2020

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(Bloomberg) -- Emerging market central banks have cut rates by more than 20 percentage points in the last three months to stimulate their coronavirus-ravaged economies, according to Bloomberg Economics. A number are also considering asset purchase programs. Unconventional monetary policy carries unique risks for emerging markets: With central bank independence less well-established, the risk of fiscal dominance is greater.

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