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EM economies now less vulnerable to US rate hikes

The sudden sell-off in EMs that started on Friday, triggered by hawkish comments from the head of the Boston Fed Eric Rosengreen, points to a turbulent period ahead for EM financial markets as the next Fed rate hike draws closer. But economic vulnerabilities in most EMs to rising US rates are not as significant as is commonly perceived and have actually diminished over the past year or so.

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