Underlying inflation problems in Central and Eastern Europe and Latin America and perennial exchange rate worries in Indonesia mean that their central banks are, if anything, likely to react hawkishly to the effects of US import tariffs. Interest rates may follow a higher path than is widely expected. But central banks in Mexico and much of Asia are likely to be more concerned about the hit to activity and more inclined to lower interest rates.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services