Mexican deputy tells EMs to assume US rate hike coming ‘sooner rather than later’
Advises emerging markets to prepare ‘as fast as possible for a worst-case scenario’
Emerging markets should assume interest rates in the US will begin rising "sooner rather than later" and "be ready to face wide swings" in international financial markets, according to Bank of Mexico deputy governor Javier Guzmán Calafell.
Calafell told an audience at a conference in Washington, DC last week that emerging markets must essentially "prepare as fast as possible for a worst-case scenario". The Federal Reserve is widely expected to hike rates later this year.
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