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Watch emerging markets or risk getting blindsided – again

Canadian investors ignoring the panicked moves by emerging markets’ central banks risk having their portfolios blindsided for the fourth time in the past fifteen years.

The South Africa Reserve Bank became the last of the “Fragile 5” emerging markets central banks to raise interest rates early Wednesday morning. This followed an emergency midnight meeting of the Central Bank of the Republic of Turkey that stunned markets by raising the country’s benchmark rate by 425 basis points to 12 per cent.