Rate-hike risk creeps up on emerging markets

Vigilance needed: A woman walks past a shop with a rental sign in Ankara. If inflation truly does show signs of resurgence, vulnerable countries in this space include Turkiye, India and China. — AFP

GLOBAL investors are unwinding bets on local-currency bonds as some emerging-market central banks come under pressure to raise interest rates – rather than cut them as widely anticipated just weeks ago.

Money managers differ on the roster of countries that may have to tighten monetary policy in response to a changed global landscape, but among them are turbulent economies such as Turkiye and South Africa, and even emerging giants like India and Mexico.