The MUFG Global Markets Podcast
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Stagflation apprehensions across emerging markets: The MUFG Global Markets Podcast
The growth-inflation nexus is deteriorating precipitously for emerging markets. Risk sentiment across EMs has been on a rollercoaster ride for months, faced with a myriad of challenges such as continued COVID-19 headwinds and variants, downside growth risks, rising inflation and inflation volatility, a less supportive global liquidity backdrop, the looming tapering of asset purchases by developed market central banks, regulatory tightening in China, a resurgent US dollar, a spike in energy prices and a leg up in core bond yields.
Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes that the fear of stagflation – portmanteau of slowing growth and rising inflation – will increasingly move front of mind for emerging market investors, with volatility likely staying elevated until year-end.
Disclaimer: www.mufgresearch.com (PDF)
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