De Silva: Fed Tightening Not Good For EM

The transcript discusses predictions for interest rate changes, focusing on the potential impacts on emerging markets and currencies. It highlights the aggressive rate hikes in Brazil and the challenges faced by emerging Asia in catching up. The discussion also covers the correlation between the strength of the dollar and EM debt yields, and the potential for currency wars due to interventions by major economies like China and the US.

What is the official view of HSBC regarding the Fed's rate hike?

• 100 basis points

• 75 basis points

• 50 basis points

• 125 basis points

Which emerging market currency was the second best performing in 2022?

• Indian Rupee

• Brazilian Real

• Russian Ruble

• Mexican Peso

How many basis points did Brazil raise its rates by?

• 1500 basis points

• 1175 basis points

• 500 basis points

• 225 basis points

What is the correlation between the strength of the dollar and EM debt yields?

• Moderate correlation

• Low correlation

• No correlation

• High correlation

Which region is considered behind in terms of rate hikes compared to Latin America?

• Emerging Asia

• Europe

• North America

• Africa

What is the key issue in the potential currency war between China and the US?

• Trade tariffs

• Technological competition

• Interest rate differentials

• Military tensions

What unusual action is China taking in the current economic environment?

• Raising interest rates

• Cutting interest rates

• Increasing tariffs

• Reducing exports