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It’s not only in DM: Big fiscal expansion from the Andeans
Weekly investor research
22 June 2020
The three largest Andean countries (Colombia, Chile and Peru) announced steps to increase fiscal expansion. Argentina postponed the deadline for the debt restructuring offer until 24 July. Bloomberg reported that India is actively seeking inclusion in the GBI-EM index as the government increased fuel prices to alleviate the fiscal deficit. The Central Bank of Brazil cut policy rates to 2.25% and left the door open for further easing. Bank of Indonesia cut policy rates to 4.25% and said the rupiah remains undervalued. The Central Bank of Poland is concerned over an overvalued Zloty. China’s president expressed strong support for African countries.