Tightening cycles in Latin America and Emerging Europe are already at an advanced stage. Some 70-80% of the likely rate hikes in their cycles have already been delivered and policymakers will bring these to an end before the end of the year. But inflation concerns mean that interest rates in these regions will remain above their neutral levels for some time. In contrast, low inflation has allowed central banks in Asia to raise rates more slowly and the policy stance will remain more accommodative than elsewhere.
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