The Director of the Asia and Pacific Department of the International Monetary Fund (IMF) warned on Wednesday that “The escalation of the conflict in the Middle East will affect oil prices, which will have repercussions on many Asian countries“.
Additional comments
“Asian central banks could see room to ease monetary policy by the end of the yearas inflation moderates.”
“Average inflation in Asia fell to 2.6% in 2023 from 3.8% in 2022, with especially rapid progress in emerging economies.”
“Many regional central banks are on track to meet their inflation targets in 2024. As long as policymakers hold firm until inflation is firmly anchored again, room for monetary easing could emerge later in the year.”
“Divergences… China's near-zero price growth last year “fuels concerns about deflation… and Japan's inflation will likely remain above the central bank's 2% target through 2025.”
“There is a risk that diverging monetary stances in the United States and Asia will trigger strong movements in exchange rates this year as well.“.
“The escalation of the conflict in the Middle East could affect oil prices, which would have repercussions on many Asian countries“
“We had good discussions on exchange rates with the Japanese authorities, who were in favor of flexible rates acting as a buffer.”
“Intervention in the foreign exchange market could reduce excess volatility and better align exchange rate movements with fundamentals“
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
