Asian Central Banks Pause
Thursday 8 September 2011
HONG KONG (The Wall Street Journal) – Fast-growing emerging economies in Asia are facing an unsettling combination of slowing growth and persistent inflation, complicating decisions for central banks who seem content for now to take a wait-and-see approach.
With the global economy cooling, central banks in South Korea, Philippines, Indonesia and Malaysia opted Thursday to leave benchmark interest rates steady, despite signs that price pressures aren’t yet easing. These countries face a classic monetary-policy challenge of trying to fight inflation at a time when growth is slowing and the chances for an outright recession in the developed world have increased.