IMF chief warns of emerging market risk with high U.S. interest rates

High U.S. interest rates traditionally spell bad news for emerging markets, making their debts — which are often priced in U.S. dollars — more expensive.

International Monetary Fund Managing Director Kristalina Georgieva speaks during a briefing on the Global Policy Agenda at IMF headquarters during the IMF/World Bank Spring Meetings in Washington, DC on April 18, 2024.Kristalina Georgieva, the managing director of the International Monetary Fund, played down the prospect of any negative impact from a monetary policy divergence between Europe and the U.S., but said issues could be more acute in emerging markets.

A high U.S. interest rate environment is traditionally bad news for emerging markets, as it makes their debts — often priced in U.S. dollars — more expensive. It can also trigger capital outflows, as investors opt for better returns in the U.S., and can cause much tighter financial conditions.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

IMF chief warns of emerging market risk with high U.S. interest ratesThe benchmark rates of most advanced economies soared in recent years, as central banks aimed to tame inflation following the Covid-19 pandemic.
Sumber: NBCNewYork - 🏆 270. / 63 Baca lebih lajut »

High company valuations a ‘worry,' IMF's capital markets chief saysHigh corporate valuations could pose a significant risk to financial stability as market optimism becomes untethered from fundamentals, the IMF said Tuesday.
Sumber: NBCPhiladelphia - 🏆 569. / 51 Baca lebih lajut »