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Inflation debate hits emerging markets as Pimco backs economic rebound


Investors are about to get a snapshot of any price pressures building across the developing world the fallout of the unprecedented stimulus that’s been unleashed to revive the global economy.
Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that’s being fueled by months of easy money and fiscal largess. Citigroup Inc.’s inflation-surprise index for emerging markets spiked last month to its highest since 2008, a sign that investors may be underestimating the scale of the resurgence.
Long the scourge of debt holders and a threat to currency stability, accelerating inflation has already forced policy makers in Brazil and Russia to raise borrowing costs. The Czech central bank last week signaled it could follow suit in mid-year, while Turkey’s monetary authority has pledged to keep rates elevated until there is a significant slowdown in price gains. ....

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Inflation debate hits emerging markets


MONEYWEB
app instead?
With Pimco standing firm.
08:26 
Image: Bloomberg
Investors are about to get a snapshot of any price pressures building across the developing world the fallout of the unprecedented stimulus that’s been unleashed to revive the global economy.
Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that’s being fueled by months of easy money and fiscal largess. Citigroup Inc.’s inflation-surprise index for emerging markets spiked last month to its highest since 2008, a sign that investors may be underestimating the scale of the resurgence.
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Turkish lira crashes after central banker ousted by Erdogan

Turkish lira crashes after central banker ousted by Erdogan
sofokleous10.gr - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sofokleous10.gr Daily Mail and Mail on Sunday newspapers.

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World-Leading Lira Rally Turns Bank Analysts Into Bulls


World-Leading Lira Rally Turns Bank Analysts Into Bulls
Bloomberg
2/16/2021
Tugce Ozsoy
(Bloomberg) The Turkish lira’s hot start to 2021 is even winning over some skeptics who are betting on further gains in the months ahead.
The currency has jumped a world-leading 23% against the dollar since President Recep Tayyip Erdogan overhauled his economic policy team in early November. That shakeup buoyed investor optimism that Ankara would take a more orthodox approach to managing one of the Middle East’s largest economies.
Analysts at Societe Generale SA and HSBC Holdings Plc predict the advance isn’t over just yet. They say the lira will rally to 6.5 per dollar by year-end, signifying a 7% increase from its current level. The thinking is that Turkey’s dwindling foreign-exchange reserves may dissuade Erdogan from intervening on monetary policy for now. Recent interest-rate hikes and the prospect of inflation remaining in the double di ....

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