Wrong direction, efforts wasted
Right direction, twice the result with half the effort
【Capital Economics: Low oil prices have a positive impact on many emerging markets】
Capital Economics analyst William Jackson noted in a report that although the drop in oil prices puts budget pressure on oil-producing countries like Saudi Arabia, for most emerging market countries that are oil importers, this may help offset the impact of tariffs. The decline in oil prices has brought about a modest but pleasing relief by improving trade conditions, reducing inflation, and providing more room for monetary policy easing for central banks. Williams estimates that, compared to the company's baseline assumption, an oil price of $60 per barrel could reduce fuel inflation in emerging markets by about 5 percentage points and lower overall inflation by about 0.3 percentage points. However, he stated that many central banks may still adopt a cautious stance given the pressures on the currency.
