A growing divergence in interest-rate outlooks is forcing emerging-market investors to reshuffle bets.
Within the past week, Indonesia’s central bank delivered an off-cycle rate hike to reverse a market selloff and support its currency, while policymakers in HungaryBloomberg Terminal and PolandBloomberg Terminal are considering lowering borrowing costs after inflation fell short of estimates. Traders — who are also bracing for rate decisions in the US and Japan — expect Brazil to cut and Chile to keep key rates unchanged in the coming days.