Emerging market central banks accelerated interest rate cuts in June, with policymakers rushing to trim benchmarks as major central banks including the U.S. Federal Reserve and the European Central Bank adopted a more dovish tone.
Interest rate moves by central banks across a group of 37 developing economies showed a net five rate cuts last month -- the largest number since September 2017. In May, developing market central banks recorded a net two rate cuts.
The fifth month of net rate cuts follows a tightening cycle that ended in early 2019. Then, interest rate hikes by emerging market central banks outstripped or matched cuts for nine straight months as they battled the fallout from a strong dollar, rising inflation and softer currencies.