Brazil cut rates to 13.75%, Turkey held at 37%, and South Korea moved toward another hike, all in the same week the Fed raised its rate to 3.75%-4.00%. Emerging-market policy is splitting along domestic lines, not tracking Washington.
21Shares argues the fifth Copom cut still leaves an outsized real-rate cushion for the real, with election polling likely to matter more for BRL than another 25bp of easing. Source
Brazil cut rates again this week. Korea is one meeting away from a hike. Turkey held at a number most central banks would consider a crisis rate. All three moves landed in the same week the Federal Reserve raised its target range 25 basis points to 3.75%-4.00%, and none of them were really about the Fed at all.
