(Bloomberg) -- Emerging-market stocks posted their steepest monthly drop in more than three years as Federal Reserve officials signaled that they’re prepared to raise U.S. interest rates and concern grew that China’s efforts to prop up equity prices is failing.

Investor expectations that the market turmoil will spur the Fed to delay its interest-rate increase was shaken after Vice Chairman Stanley Fischer said over the weekend there is "good reason" to believe inflation will accelerate. Officials of the European Central Bank and the Bank of England echoed that view, indicating that the days of higher borrowing costs are approaching. In China, options traders increased bearish bets as they weighed the level of state support for the markets.

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