Monday, October 12, 2015

BoE's Shafik: Rate hikes discouraging leverage in EMs could be misguided

FXStreet (Bali) - Bank of England Deputy Governor Minouche Shafik, crossed the wires over the weekend, at the IMF conference in Lima, noting that the assumption of rate hikes discouraging leverage in EMs (Emerging Markets) could be misguided.

Additional headlines

The risk inherent in this build up of leverage (in emerging markets) has motivated calls for a normalisation of advanced economy monetary policy sooner rather than later.

Tightening advanced economy monetary policy solely to discourage further borrowing could make the job of getting inflation back to target more difficult.
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