Pak's central bank chief warns of taper tantrum-style shock to Ems

Reza Baqir urges advanced economies to act to stem rising global inflation

Pakistan’s central bank governor has warned that emerging markets are vulnerable to a taper tantrum-style shock if advanced economies do not act sooner to manage rising global inflation.

In interview with the Financial Times, The comments by Reza Baqir, a former senior IMF official, signal growing unease among developing-economy policymakers that central bankers in rich countries are not doing enough to rein in pandemic-era monetary stimulus and combat rising prices. This will disproportionately hurt developing countries if foreign investors end up dumping emerging and frontier market assets owing to unexpected interest rate rises in advanced economies, Baqir said.

“If there’s volatility in