Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Alex Schober on “After the election, Argentina’s Central Bank hiked the benchmark policy rate 150 basis points”
“The Central Bank of Argentina (BCRA) hiked interest rates from 26.25% to 27.75% in response to a rise in core inflation in September. Although this might attract more “hot money” by foreigners into Argentina (and thus appreciating the peso), the BCRA is being transparent in demonstrating its hawkish stance toward reducing inflation, which is the main economic problem in the country at the moment.”
Dalia Naguib on “Morocco’s king fires ministers over economy in region shaken by protests”
“The King’s dismissal of several ministers, including education, health, and planning and housing, signals the King strives to address the social discontent in northern Morocco, however it is unlikely to be enough to halt the protests. MNCs must enhance their government engagement as officials change, and identify new key stakeholders.”
Ryan Connelly on “Liberals to spend additional $15B over next five years”
“In its semi-annual economic update, the Canadian Government had great news: strong GDP growth led to a surge in government revenues. The Government revised down its 2017 deficit projection from $28.5bn to $19.9bn. The Liberals used part of the windfall to fund $15bn of new spending and tax relief, with tax relief targeted at groups likely to increase consumption activity.”