FX & CFD trading involves significant risk
Fitch Ratings said in its report "Fed Lift-off Matters for Emerging Markets" that the interest rate hike by the Fed could have a negative impact on emerging economies, despite the fact that the Fed's interest rate hike is widely expected.
"Part of the rationale for ultra-loose monetary policies from global central banks has been to depress risk and term premiums via a portfolio-rebalancing effect. This is consistent with the emergence of pressure on emerging markets as Fed lift-off approaches," Fitch said.
The agency noted that the future path of interest rate hikes remains unclear and that "an outcome closer to the Fed's guidance could be a significant shock".
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.