Risk of emerging-market economic deterioration due to US Federal Reserve rate hikes
First written in FY2018-Q2. 2 of 8 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2022: 158 of 184 companies on the "Worse" side.
- FY2021DroppedAnnual reportThe risk of emerging-market economic deterioration from US Federal Reserve rate hikes, which had been disclosed previously, is not listed as a separate item under “Business and Other Risks” in this annual securities report.
- FY2020-Q3RestatedAnnual report
「In response, the Federal Reserve decided at the Federal Open Market Committee meeting held in December to maintain the policy rate at 1.50–1.75%.」
Following rate cuts through the previous quarter, the US policy rate was held at 1.50–1.75%. No new rate hike is disclosed in connection with the risk of emerging-market economic deterioration from US Federal Reserve rate hikes. - FY2020-Q2MitigatedAnnual report
「At its October Federal Open Market Committee meeting, the US Federal Reserve decided to lower the target range for the federal funds rate from 1.75–2.00% per annum to 1.50–1.75%, a reduction of 0.25 percentage points. The European Central Bank and central banks in emerging markets also cut interest rates, accelerating synchronized global monetary easing.」
In contrast to the previously identified risk of capital flowing back from emerging markets as a result of US Federal Reserve rate hikes, cuts by the Federal Reserve, ECB and emerging-market central banks, together with synchronized global monetary easing, are disclosed. - FY2019WorsenedAnnual report
「In the United States, personal consumption remained firm and the unemployment rate remained low, in the 3% range, as major tax cuts substantially increased corporate earnings and favorable employment conditions increased the number of employed people. As a result, the US Federal Reserve implemented 4 rate hikes during the year.」
The US Federal Reserve's rate hikes progressed from a concern to actual implementation of 4 hikes during the year, and changes in the interest rate environment, including the risk of capital flowing back from emerging markets and elsewhere, continued. - FY2019-Q3MaterialisedAnnual report
「The global economy remained firm because it was performing well. In the United States, where economic conditions remained strong, the Federal Reserve decided at the Federal Open Market Committee meeting held in December to raise the policy rate by 0.25 percentage points, from 2.25% to 2.50%.」
The previously anticipated additional US rate hike was implemented, and the policy rate was raised from 2.25% to 2.50%. - FY2019-Q2MaterialisedAnnual report
「In emerging markets, US interest rate hikes have caused funds that had flowed into the markets to reverse direction, leading to currency depreciation and higher interest rates.」
The previously anticipated reversal of capital flows from emerging markets, currency depreciation and higher interest rates associated with US rate hikes are described as actual economic developments. In the United States, the policy rate was raised from 2.00% to 2.25%. - FY2018-Q3RestatedAnnual report
「Although economies in emerging markets such as India and Brazil are also recovering, investment capital could flow back as a result of future US rate hikes, potentially slowing the economic recovery.」
The possibility that US rate hikes could trigger a reversal of investment capital flows and slow the economic recovery in emerging markets continues to be disclosed. - FY2018-Q2First statedAnnual report
「The US Federal Reserve is improving its balance sheet, and if further rate hikes are implemented, pressure for capital outflows from emerging markets may accelerate, raising concerns about the risk of another economic deterioration.」
The possibility of capital outflows from emerging markets and economic deterioration triggered by additional US Federal Reserve rate hikes is disclosed as a risk for the first time.