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Fed rate hikes good for world, bad for emerging markets: ECB's Constancio
May 24, 2016 / 1:26 PM / a year ago

Fed rate hikes good for world, bad for emerging markets: ECB's Constancio

FRANKFURT (Reuters) - Further interest rate hikes by the U.S. Federal Reserve will be “good news” for the world because they will show its largest economy is in good health, though they could pose a challenge for emerging markets, European Central Bank Vice President Vitor Constancio said on Tuesday.

European Central Bank Vice President Vitor Constancio speaks during a Reuters Newsmaker event in New York February 19, 2016. REUTERS/Brendan McDermid

“The only possible negative development, not certain at all, is if the increase in rates in the U.S. ... could impact some emerging countries in a negative way,” Constancio said, presenting the ECB’s Financial Stability Review.

“But as a whole, if the Fed considers that it is justified to increase rates, it’s good news for the world economy.”

Reporting By Francesco Canepa; Editing by Gareth Jones

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