Asia-2011
ASIA GETS READY TO FACE INFLATION AFTER GROWTH REBOUND
CHINA TIGHTENS MONETARY POLICY TO STABILISE THE ECONOMY
2010-12-29 12:11
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Developing Asia led the world’s post- crisis recovery in 2010 with its own robust growth of around 9 per cent but the region will now encounter inflationary pressures from the surge in global oil and other commodity prices. Faced with soaring food prices, asset bubbles and excessive liquidity, China is exiting from its “moderately loose” monetary policy and employing a range of tools to normalize liquidity during 2011. It has raised lending and deposit rates twice in the last quarter of 2010 as well as reserve requirements for banks.