Krishna Srinivasan, director of the International Monetary Fund (IMF) Asia Pacific, said some central Asian countries as inflationary pressures have increased due to rising global food and fuel costs due to the Ukrainian War. Banks have indicated that they must raise interest rates rapidly.
"Inflationary pressures in Asia are still mild compared to other regions, but inflation in many countries is above the central bank's target," he said in a blog on the 28th.
He also pointed out that most emerging Asian countries and regions had capital outflows comparable to 2013. Global bond yields skyrocketed this year as the Federal Reserve suggested that bond purchases could curtail faster than expected.
Especially noticeable in India, it is said that $ 23 billion has flowed out since Russia's invasion of Ukraine. Funds are also flowing out in South Korea and Taiwan.
He pointed out that Asia's share of total global debt has risen from 25% before the global financial crisis to 38% after the coronavirus epidemic, increasing Asia's sensitivity to changes in the global financial situation. He said that some Asian countries may need to take steps such as foreign exchange intervention and capital regulation to deal with the sudden outflow of funds.
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