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26 Jan 2023

Time for emerging market central banks to pivot?

As the Citi Inflation Surprise Index for emerging markets (EM) turned negative for the first time since July 2020, the bond market appears to be hoping for a pivot from EM central banks (CBs). The end of policy tightening in EM is already visible, as the pace and magnitude of rate hikes by EM CBs has begun to slow. Source: Topdown charts.

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