IMF Official: Emerging Markets Must Tackle Inflation

A top International Monetary Fund official on Tuesday said emerging markets must act quickly to tame rampant inflation, but said there is no need to worry yet about a global market selloff.

“This is not a panic situation,” said José Viñals, the IMF’s top financial counselor, in a briefing with reporters, after nearly a week of selloffs in emerging market bond, currency and equity markets.  “So far, this is a combination of idiosyncratic factors,” including domestic turmoil and headwinds from abroad, in a subset of emerging market economies, he said.

Many emerging market economies have suffered from investor pessimism. But Argentina, Turkey, Ukraine and South Africa have been hit the hardest, as investors have shown increasing skepticism about the ability of authorities to calm growing political and economic turmoil.

WSJ

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.