Emerging markets lead rate hikes as Iran war stokes inflation

Published June 3, 2026 Updated June 3, 2026 09:45am

Emerging-market central banks are leading a wave of interest-rate hikes as the war in Iran reignites inflation, moving faster than most developed-world peers, which remain on hold to assess the economic fallout, Bloomberg reports.

Since fighting began in late February, at least 10 emerging- and frontier-market central banks have raised rates, with Indonesia, Rwanda, South Africa and Sri Lanka tightening policy in the past two weeks.