BlackRock warns of emerging market rout after Fed raises rates

New York

THE emerging-market swoon touched off by the so-called "taper tantrum" two years ago is destined to repeat itself, BlackRock Inc says.

When the Federal Reserve raises interest rates, the sell-off will be every bit as painful as the rout that ensued in May 2013, when then-chairman Ben Bernanke suggested that the central bank would soon wind down its bond-buying programme, according to the world's largest money manager. Developing-nation debt sank as much 10 per cent in the wake of the comments while currencies from India's rupee to Turkey's lira plunged.