In the wake of the global economic crisis, Asia’s central banks, like their counterparts in the advanced economies, took on a leading role in supporting domestic growth. But, as the global economic recovery gains momentum, the time has come to begin tightening monetary policy.
SEOUL – Financial markets around Asia are preparing for a Goldilocks economy in 2018 – not too hot, not too cold, with strong growth and stable prices. The region’s export-oriented emerging economies are benefiting from the recovery in global trade, while its largest players – China, Japan, and India – remain dynamic. Throughout the region, accelerating economic growth, together with positive corporate earnings expectations and persistent capital inflows, are driving up stock prices. And inflation will remain in check, owing largely to the slow rise in wages and import prices.
SEOUL – Financial markets around Asia are preparing for a Goldilocks economy in 2018 – not too hot, not too cold, with strong growth and stable prices. The region’s export-oriented emerging economies are benefiting from the recovery in global trade, while its largest players – China, Japan, and India – remain dynamic. Throughout the region, accelerating economic growth, together with positive corporate earnings expectations and persistent capital inflows, are driving up stock prices. And inflation will remain in check, owing largely to the slow rise in wages and import prices.