Policy normalisation puts EMs in ‘perilous’ situation – Mexico’s Calafell
Deputy governor says monetary policy may tighten faster than markets expect
The withdrawal of monetary stimulus in advanced economies has put developing countries in a “perilous” situation, according to a deputy governor of the Bank of Mexico.
The reduction of central bank balance sheets and rising interest rates is “exerting upward pressures on international interest rates at all maturities,” said Javier Guzmán Calafell at an event in Switzerland on June 26.
The tightening of monetary policy in advanced economies “may proceed at a faster pace than currently
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