World Bank Warns Against Fed Rate Hike

The World Bank has warned developing countries to brace themselves for possible financial turbulence when the US Federal Reserve starts to raise interest rates.

It could come as early as Thursday when the Fed concludes a policy meeting.

A new report from the World Bank says there will probably be a modest impact on developing countries.
But it also warns there is some risk that it could be worse.

The Bank says it is possible that there would be sufficient disruption to capital flows into developing countries to harm economic growth and financial stability.


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 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