Monetary policy rates in India and South Korea, for example, will increase to 6.40% and 3.50% respectively in the first quarter of 2023 and be maintained throughout 2023.
The phenomenon of higher and longer monetary policy rates in developed countries compared to EME countries shows that fragmentation due to geopolitical tensions  Index  700 650 600 550 500 450 400 350 300 250 200  Index  120 USD appreciation against Major Currencies  110 105 100 95 90 2  4  6  8  12  2020 EMBI Spread  Data as of 14 November 2022 Source: Bloomberg  14  115  2  4  6  8  12  2  2021 Dollar Index (rhs)  4  6  2022  8 11  85  5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0  bps  %  800 700 600 500 400 300 200  1M 2M 3M 6M 1Y  2Y  3Y  5Y  7Y 10Y 20Y 30Y  Increase in yield (rhs) Yield as of 15 Nov-2022  Source: Bloomberg  Yield as of 31 Des-2021  100  hikes, and the strong US dollar (Graph 4.a).