BlackRock: Developed market central banks are expected to adopt a "Higher for Longer" interest rate strategy, similar to emerging markets

BlackRock Investment Research Institute stated that emerging market central banks are pausing rate cuts due to inflation concerns, while developed market central banks may need to maintain higher rates for a longer period. Countries like Brazil, Mexico, and Poland have already lowered rates in emerging markets, but are constrained by developed market central banks maintaining stable or slowly decreasing rates. Emerging markets may face pressure on their currencies and damage to inflation-sensitive economies. Maintaining higher rates may not necessarily be bad news for risk assets