According to Golden Finance, Carlos de Sousa, portfolio manager for emerging market debt at Vontobel, said that the global financing environment will continue to ease in the coming months following the Federal Reserve's 50 basis point rate cut, which will help emerging market central banks to continue their accommodative policies. This will create room for several emerging market central banks to restart or continue their easing cycle that began before the Fed's moves. Lower risk-free rates in developed countries will also reduce external borrowing costs for emerging market issuers, thereby reducing refinancing risk and enhancing debt sustainability. The easing cycle will encourage asset allocators to increase their exposure to emerging markets, as the attractiveness of money market instruments and core developed market interest rates gradually declines.