We expect more intervention and FX reserves accumulation in Emerging Asia as well as further regulatory controls to curb capital inflow. However, the regional approach will most probably remain a measured and sensible response pitched at moderating the inflow and curbing appreciation rather than being aimed at shutting capital out and pushing currencies weaker. Asset bubbles should be avoided for some time yet but this risk is likely to grow.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.