Indian Central Bank Warns About Spillover Effects of Tapering

The implications of monetary policy in developed countries for the developing world have been a key theme at the G-20 meeting of world finance ministers and central bankers in Australia.
Rajan said he had a good relationship with Fed chair Janet Yellen and that he had spoken with her about a more “collective” approach to monetary policy.

“Janet and I know each other, I respect her greatly… And I don’t think we are talking about something that she doesn’t already know [emerging market volatility.] We are talking about how we should collectively address these issues and communicate with markets,” he added.

Rajan told CNBC he welcomed the notion of tapering but central bankers needed to acknowledge the spillover effects of their policies.
“The only thing I have been calling for is in the communication there should be some sensitivity to emerging markets,” he added.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza