Emerging market central banks turn hawkish as inflation pressures mount, Citi says

Citi said emerging-market central banks are shifting toward more hawkish policy as core inflation, domestic demand and high energy costs add to price pressures. It expects central-bank responses to diverge, particularly in Central Europe, while Egyptian assets have rallied after the U.S. midterm elections.

Citi also adjusted its broad U.S. dollar assumption toward a weaker outlook.