Alon Ozer Discusses Central Bank Meetings’ Effects on Emerging Markets with Reuters
On Thursday, September 12, 2019, emerging market assets surged as investors watched the United States and China make tariff concessions. Furthermore, emerging market currencies scaled a six-week peak against the fairly tepid U.S. dollar, with China’s yuan rising 0.4%. However, investors main focus is on central bank meetings. While the Malaysian central bank held its 3% key interest rate, the Turkish central bank is forecasted to slash its main policy rate of 19.75% to 16% by the end of the year.
Emerging market investors will also keep an eye on the European Central Bank’s decision, where they are expected to not only cut key interest rates, but also launch a fiscal stimulus package. For better insights on how emerging markets may react to these central bank meetings, Reuters recently spoke to Omnia Family Wealth Chief Investment Officer Alon Ozer.
“Emerging markets have already in some part reacted to what’s going to happen in Europe, as we have seen a number of rate cuts already including those in India and Russia,” explains Ozer. “I think the EM central bankers took the cue long before seeing that bond markets have been screaming about significant economic problems around the world.”