DM central banks face a challenging trade-off between anchoring buoyed inflation back to their targets just as economic activity starts to slowdown, according to the latest PMI surveys. In contrast, most EM central banks are approaching the end of their tightening cycle and China has started to ease monetary conditions. EM assets are likely to be resilient in the face of DM tapering quantitative easing (QE), thanks to attractive local currency valuations, tight monetary policies, improving fiscal dynamics, strong external accounts and rising commodity prices. Furthermore, large EM countries are set to benefit from a broader reopening of their economies now that the majority of their adult population is vaccinated against covid-19. Good news in the political front across Latin American countries.