Emerging market stocks and currencies ease with focus on central bank decisions
EEM•Emerging market stocks fell 0.9% on Wednesday while currencies were flat as investors awaited rate decisions in Poland and Kenya. India raised its benchmark rate by 25 basis points to 5.5%.
1. Markets edge lower
Emerging market assets edged lower as investors awaited central bank decisions and oil prices neared $101 a barrel. The emerging market stock index lost 0.9%, while its currency gauge was flat. South Africa’s rand and Thailand’s baht fell 0.3% and 0.5%, respectively, and Turkey’s lira remained at a record low.
2. Rate decisions awaited
Poland and Kenya were expected to announce interest rate decisions later Wednesday, with economists polled expecting both central banks to hold rates steady. India’s central bank raised its benchmark repo rate by 25 basis points to 5.5%, its first increase since 2023, citing mounting inflation and strong economic growth. The Indian rupee fell 0.3% to 96 per dollar, and Indian stocks declined.
3. Debt and growth outlook
Senegal aims to reach an agreement with official creditors and bondholders by December, sources said, as the country faces an estimated $13 billion in misreported debt. The World Bank raised its 2026 Africa growth forecast to 4.3%, from 4.1% earlier this year.
