For all the worries of emerging markets staring down a repeat of the 2013 Taper Tantrum, policy makers in Asia should be considerably more calm. “EM Asian central banks are able to be more accommodative precisely because of improved fundamentals," said Mitul Kotecha, chief emerging-market Asia and Europe strategist at Toronto Dominion Bank in Singapore. Led by China, they added $14.4 billion worth of securities, more than half the total to all emerging markets, according to data from the Institute of International Finance. “If you look at the context and the policy challenges for say, emerging markets in Latin America and the policy challenges for other emerging markets, it’s very different. And inflation largely remains benign, removing a threat that’s very real to other emerging markets.

Source: Mint July 06, 2021 01:30 UTC