Report on “Fed Rate Hike and the Impact on the Emerging Markets” was Released in Beijing.

By Wang Junlu  Xie Hao

Source:Xinhua News     

Published: 2018-12-18

The seminar on “Fed Rate Hike and the Impact on the Emerging Markets” sponsored by the Center for BRICS and Global Governance (CBGG) was held in Beijing. More than 100 guests from the political, industrial and academic circles attended the press conference.

Participating experts said that under the background of the US interest rate hikes, since April 2018, many emerging market countries have depreciated their currencies, the stock market has fallen sharply, the bond market has been under pressure, and capital outflow pressure has become more apparent.

“Fed Rate Hike and the Impact on the Emerging Markets” analyzed the performance, willingness, and risk mechanism of financial turbulence in emerging markets based on the Fed’s interest rate hike strategy intent, path, and prospects. At the same time, the report put forward five suggestions to improve international economic and trade strategies, built a new international economic, trade and financial order, worked together to counter unilateral sanctions, strengthened cross-border macro prudent management, and strengthened international coordination of macro policies.

According to Feng Xingke, secretary-general of CBGG, “Fed Rate Hike and the Impact on the Emerging Markets” is a key research project of CBGG this year. We hoped to use this research to explore the mechanism behind US dollar interest rate hikes, and conduct research and judgment on the trend, impact and countermeasures of US dollar interest rate hikes, to propose policy recommendation for government decision-making departments and financial investment departments in emerging market countries.