Time for emerging economies to fasten their seat belts

This week, a white- haired woman spoke and the world sat up and listened.

The head of the US Federal Reserve, Janet Yellen, delivered the latest statement on behalf of a body which can shake up global financial markets like a cocktail waiter. Analysts and traders have been watching like hawks for signs that the Fed will move to raise interest rates in an effort to see off any emerging inflationary pressures. As usual, her words were parsed carefully.

Ms Yellen appeared to confirm that there would be no hike in rates before the spring. This is no great surprise, given the deflationary impact of the recent drop in oil prices and those of other commodities.