2024-01-31 11:00:41
Central banks in Asia are likely to ease monetary policies later this year, said Krishna Srinivasan, Director of the International Monetary Fund’s Asia and Pacific Department.
He said this while speaking to the media about the Asian regional economic outlook.
China’s clear answer
He added that China must provide a consistent and clear response to address the problems in its property sector.
Asia’s average inflation has slowed to 2.6 percent in 2023 from 3.8 percent in 2022. In particular, rapid progress is being reported in the economies of developing countries.
Many Asian central banks are on track to meet their inflation targets by 2024. Due to this, chances of monetary easing may occur later this year.
In comparison, Asian central banks have raised interest rates at a lower rate than in other regions.
Monetary positions
Accordingly, divergent monetary stances in the US and Asia risk triggering sharp exchange rate movements this year as well.
Meanwhile, Asian countries are likely to contribute two-thirds of global growth again in 2024, similar to what they did in 2023.
However, growth in the region will fall to 4.3 percent in 2025 due to a slowdown in China’s economy.
Because of this, he insisted that China should provide consistent and clear information to address the problems that have arisen in its property sector.
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