World Bank President Jim Yong Kim predicted another wave of higher global interest rates that could hurt emerging markets when the U.S. Federal Reserve starts tapering its $85 billion-a-month asset-purchase program.
Bond prices slumped internationally and emerging-market stocks plunged after May 22, when Fed Chairman Ben S. Bernanke said for the first time the Fed could withdraw stimulus, also called quantitative easing. While those market movements were partly reversed after the Fed maintained its policy, the International Monetary Fund and the World Bank have urged nations from Turkey to Indonesia to strengthen their economies in preparation for the reduction.
Kim also offered the Washington-based lender’s help to the Philippines, where rescuers are battling to deliver emergency aid to areas ravaged by Super Typhoon Haiyan, which may have killed more than 10,000 people. The bank can assist in any way the government deems appropriate, he said.
© Copyright 2021 Bloomberg News. All rights reserved.