Fed rate hikes good for world, bad for emerging markets: ECB's Constancio
Reuters
Published May 24, 2016 09:24AM ET
Fed rate hikes good for world, bad for emerging markets: ECB's Constancio
FRANKFURT (Reuters) - Further interest rate hikes by the U.S. Federal Reserve will be "good news" for the world because they will show its largest economy is in good health, though they could pose a challenge for emerging markets, European Central Bank Vice President Vitor Constancio said on Tuesday.
"The only possible negative development, not certain at all, is if the increase in rates in the U.S. ... could impact some emerging countries in a negative way," Constancio said, presenting the ECB's Financial Stability Review.
"But as a whole, if the Fed considers that it is justified to increase rates, it's good news for the world economy."
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Written By: Reuters
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