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Emerging economies struggle to raise rates despite inflation

Original: Despite inflation, emerging economies struggle to raise interest rates

Central banks across emerging economies are finding it difficult to raise interest rates even as inflation pressures build. Constraints such as weak growth, high debt levels and currency instability are limiting policymakers' room to tighten monetary policy, according to reporting by Nikkei Asia. The dilemma highlights how inflation-fighting tools remain harder to use in developing economies than in wealthier ones.

Why now: Inflation remains a global concern and readers are weighing how developing countries can respond when rate hikes are hard to implement.

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• Despite inflation, emerging economies struggle to raise interest rates · Nikkei Asia

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