Most Asian central banks must tighten monetary policy further as rising commodity prices and their currencies' depreciation, driven by steady US interest rate hikes, push inflation above their targets, the International Monetary Fund said on Thursday.
China and Japan are exceptions, where the economic recovery has been weaker, slack remains substantial and inflation has not risen as sharply as elsewhere, said Krishna Srinivasan, director of the IMF's Asia and Pacific Department.
Most Asian central banks must tighten monetary policy further as rising commodity prices and their currencies' depreciation, driven by steady US interest rate hikes, push inflation above their targets, the International Monetary Fund said on Thursday.
China and Japan are exceptions, where the economic recovery has been weaker, slack remains substantial and inflation has not risen as sharply as elsewhere, said Krishna Srinivasan, director of the IMF's Asia and Pacific Department.
Large currency depreciations and rising interest rates could also trigger financial stress in Asian countries with high debt, Srinivasan said.
"Asia is now the largest debtor in the world besides being the biggest saver, and several countries are at high risk of debt distress," he said.
Most of the rise in Asia's debt is concentrated in China, but also seen in other economies, Sanjaya Panth, deputy director of the IMF's Asia and Pacific Department, told Reuters in an interview on Thursday, reports Reuters.