Interest rates in the major emerging market economies are likely to remain lower than expected in the near term amid weakening growth, Capital Economics Chief Emerging Markets Economist Neil Shearing said Tuesday.
Central banks of emerging market economies have been loosing their monetary policies over the past six months, but the action taken differed in each region.
At the start of the easing cycle, central banks in Emerging Europe cut interest rates most aggressively, reflecting the region's close ties to the crisis-stricken Eurozone, which experienced a slump in activity over the second half of last year.
While European and Asian economies lowered their interest rates in recent months to stimulate growth, there has been moderate or little policy easing in Latin America where, despite slowing growth, central banks are more constrained by higher inflation.
However, the only region in which a further significant monetary easing is expected is Emerging Europe, the economist said.
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