From India to Brazil, emerging markets can shore up global economy

South Korea and Brazil are among those with further cuts likely on the horizon, while others like China and Thailand are proceeding more cautiously on further easing

Emerging-economy central banks from India to Brazil still enjoy the firepower to shore up the global economy as their peers from developed markets take to the sidelines.

While policy makers at the Federal Reserve and European Central Bank are seemingly set to keep interest rates on hold, many of their developing nation counterparts have room to cut further. That should help support the world economy amid its weakest expansion in a decade.

“In most cases, emerging markets are now in the comfortable position to be able to cushion an economic downturn with monetary easing,” Ulrich Leuchtmann, head of currency strategy at Commerzbank