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Asian emerging market central banks may not chase Fed in raising rates: Report

Most of the monetary authorities in Asian emerging markets are likely to stick to their own pace and pay more attention to domestic demand recovery, with little concerns of falling behind the curve.

February 16, 2022 / 01:21 PM IST
US Federal Reserve: Representative image

US Federal Reserve: Representative image

Economists from Bank of America think that the Federal Reserve’s counterparts in the Asian emerging markets are in no hurry to chase the US central bank in its sharp turn to a hawkish stance, according to a CNBC report.

Global markets have witnessed a wave of volatility as investors have repositioned in anticipation of multiple rate hikes from the US Federal Reserve. In the past, this has hurt Asia’s emerging economies as it drives the dollar and the US Treasury yields higher stimulating capital flight from the region.

Also Read: Asia stocks rally as fears of Russia invading Ukraine ease

According to BofA economist Tan Boon Heng, the recent monetary policy announcements have revealed 'great patience' by the central banks in Asian countries like Thailand, Malaysia and Indonesia.