With relatively large room for conducting policy measures both on the fiscal and monetary fronts, the Chinese economy is likely to follow a generally stable growth path, albeit at a somewhat reduced pace. Emerging economies other than China are also showing sluggishness, reflecting the spillover effects of adjustments in China and global weakness in IT-related demand.
The biggest move in US rates over the second half of the decade was the easing in late 1998 as a result of the “credit crunch” which followed the Russian default and the demise of the hedge fund LTCM.