The US Federal Open Market Committee (FOMC) provided little in the way of encouragement for emerging markets at its meeting on Wednesday, delivering a 25bp hike to the Fed Funds Rate, meaning the wind will keep blowing firmly against emerging markets. Lewis McLellan reports.
With the US economy growing quickly and unemployment below 4%, the rate hike came as no surprise to market participants.
“The US has plenty of domestic reasons to raise rates, looking at jobs reports and corporate earnings,” said Neil MacKinnon, global macro strategist at VTB Capital.
The new rate