11  “Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?” by T. Didier, M. Kose, F. Ohnsorge and L. Ye, World Bank Policy Research Note PRN/15/04, December 2015  12  Monetary Policy Review, SARB, November 2015. BIS central bankers’ speeches  5  fell against the dollar, although it subsequently rallied somewhat, and government bond yields rose.
While some volatility was expected, the relatively muted market response in South Africa and elsewhere is encouraging, and suggests that the rate hike was mostly priced in by the market. Continued clear communication by the Fed will be instrumental in containing the potential negative spillovers of US monetary policy to emerging markets going forward.