ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Emerging nations pivot toward monetary easing

Low inflation, smaller outflow risks present a window of opportunity

Brazil's food prices are falling as inflation subsides, giving the government room to rebuild the economy with interest rate cuts.

NEW YORK/SAO PAULO -- Emerging nations are jumping on the monetary easing bandwagon just as advanced nations head toward tightening, taking advantage of slower inflation and a reduced risk of capital flight to nurse their economies back to health.

Emerging-market interest rates have fallen precipitously this year, particularly in South America. Brazil's central bank has cut its policy rate a total of 4.5 percentage points in five rounds since the beginning of 2017, arriving at 9.25% in July. Colombia's has made six cuts and Peru's has made two, to 5.5% and 3.75%, respectively.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more