AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)

TOKYO: Asian economies must be mindful of spillover risks as a decade of unconventional easing policies by major central banks is unwound faster than expected, International Monetary Fund Deputy Managing Director Kenji Okamura said.

This risk applied particularly to the most vulnerable economies, said Okamura.

Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilise debt and inflation, he said.

The Bank of Japan’s easing policy – which the IMF has described as quite effective – runs counter to a global shift towards monetary tightening, with central banks in the United States, Britain and Australia having already raised interest rates.

Govt seeks more SDRs from IMF to propel economy

The widening gap between Japanese and U.S. interest rates has been a major factor behind the recent yen depreciation to two-decade lows.

“You can mostly explain the recent movements, especially the last month, in the yen based on essentially tighter global monetary policy” including the U.S. Federal Reserve, said Ranil Salgado, assistant director and Japan mission chief at IMF’s Asia and Pacific Department.

“The yen depreciation on balance helps Japan,” Salgado added, echoing views of BOJ Governor Haruhiko Kuroda.

Okamura, a former Japanese vice finance minister for international affairs, said the COVID-19 pandemic, the war in Ukraine and tighter global financial conditions would make this year “challenging” for Asia.

The war was affecting Asia through higher commodity prices and slower growth in Europe, he said.

Speaking at his first media event since becoming one of four deputy managing directors at the global lender in December, Okamura warned on the prospect of even more forceful tightening if inflation expectations kept on “drifting”.

“There is a risk that drifting inflation expectations could require an even more forceful tightening,” he said, calling for calibrated policies and clear communication.

Comments

Comments are closed.