How can emerging market economies best cope with the current complex global economic environment?

Remarks by Mr Luiz Awazu Pereira da Silva, Deputy General Manager of the BIS, at the XVIII Annual Inflation Targeting Seminar of the Central Bank of Brazil, Rio de Janeiro, 20 May 2016.

Although it may not be an immediate threat, a bond yield snapback would pose an important challenge to the macro and financial stability of both EMEs and some AEs. EMEs in particular need to be vigilant while the potential exists for such a development. There is a need to put or keep one's house in order to benefit from strong macro fundamentals. Doing so will also create conditions that allow structural reforms to be implemented as needed and in a consensus-building manner, and that promote a stable and sustainable growth horizon for both domestic and foreign investors.