World Markets Review
Investment insights from Capital Group
EM inflation has risen by less than US inflation
Core inflation (year-on-year %)
EM real yield differential rising
EM real yields minus US real yields
Real yields are mostly positive across EM
EM real yields
1. Data as at 6 March 2022. CPI: consumer price index. Inflation basket refers to a set of consumer products and services whose price is evaluated on a regular basis to track inflation. Source: Morgan Stanley
2. Quantitative easing is when central banks make large scale purchases of financial assets to increase money supply, which helps lower interest rates and therefore stimulate economic growth.
3. A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.
World Markets Review
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