The moment investors have been waiting for seems to finally have arrived, as major central banks have indicated they are nearing the end of their string of interest-rate rises.
In its latest decision on Wednesday, the Fed kept interest rates steady, but projected monetary policy will remain significantly tighter through 2024 than previously expected. Consumer prices increased by 5.2% year on year in August, extending a downward trend that started last autumn. The oil price - a major inflation variable that lies beyond the control of any policymaker - has risen above $90 a barrel to 10-month highs, serving an unpleasant reminder that what goes down can also easily go up again. The key driver has been Saudi Arabia and Russia, which account for over 20% of global output, agreeing to extend production cuts through year-end, to align supply with demand.
Its government bond markets - in which foreigners currently hold less than 2% of outstanding paper - could get another boost when fellow index provider FTSE Russell decides on Sept. 28 whether to add India to its emerging bonds benchmark.People walk to an entrance at Indonesia's central bank Bank Indonesia in Jakarta, Indonesia July 21, 2016.