A shift is under way across emerging markets. As inflation eases in several economies, central banks are increasingly weighing when — not whether — to begin cutting interest rates.
The turning point
From Brazil's softening retail sales to cooling price gauges elsewhere, the data increasingly point to slowing demand and easing inflation. That combination opens the door to rate cuts after a long period of tight policy.
Balancing act
Policymakers must still guard against renewed price pressures, including from higher energy costs tied to geopolitical tensions. But the broad trend toward easing inflation is giving many emerging economies more flexibility than they have had in years.
Sources: Rio Times, Deloitte.