Company: TXEMF
Filing Date: 2025-03-03
Form Type: N-CSR
Source: 0001133228-25-001853
Chunk: 3

Company: TEMPLETON EMERGING MARKETS INCOME FUND
Filing Date: 2025-03-03
Form: N-CSR
Chunk 3
---
risk.

We

seek

to

manage

the

Fund’s

exposure

to

various

currencies

and

may

use

currency

forward

contracts.

#### Q.

#### What

#### were

#### the

#### overall

#### market

#### conditions

#### during

#### the

#### Fund's

#### reporting

#### period?

#### A.
On

the

monetary

policy

front,

the

period

reflected

a

notable

pivot

towards

easing

as

more

developed

market

central

banks

started

to

cut

rates.

Most

developed

market

central

banks

have

started

easing

by

now,

with

the

main

exceptions

being

Australia

and

Norway.

The

Bank

of

Japan

(BoJ)

is

a

notable

outlier

to

the

global

easing

trend

as

the

Japanese

economy

structurally

reflates,

and

it

started

to

gradually

remove

monetary

accommodation

during

2024.

Among

emerging

markets,

the

early

movers

in

Latin

America

and

eastern

Europe

slowed

or

paused

rate

cuts,

and

a

couple

of

Latin

American

countries—notably

Brazil,

and

more

recently

Uruguay

—had

even

started

raising

rates

again

by

year-end.

Some

emerging

Asian

central

banks

started

cutting

rates

later

in

the

year,

but

the

pace

remains

slow.

This

global

downward

trend

in

interest

rates

has

been

enabled

by

ongoing

disinflation.

However,

the

deceleration

in

inflation

was

much

more

gradual

in

2024

than

in

2023,

sometimes

with

occasional

setbacks

as

base

effects

dissipated

and

some

food

and

energy

prices

began

rising

again.

Nonetheless,

by

this

stage

a

number

of

countries

have

inflation

back

inside

targets,

while

others

have

made

significant

progress.

Japan

is