To avoid a repeat of the panic that seized markets in 2013, Fed Chair Janet Yellen and her colleagues have stressed in recent speeches that monetary policy will remain unusually easy after they begin to tighten this year.

International Monetary Fund Managing Director Christine Lagarde said earlier this month that the selloff taught countries that they “have to have macroeconomic fundamentals as solidly determined and anchored as possible.”

While an increase in U.S. rates will rattle emerging markets again, flexible exchange rates across the developing world will help limit the fallout, according to BlackRock’s Bisat.

“Higher costs of capital and tightening global liquidity will create stress, but will not necessarily create crisis,” he said.
 

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