Right-hand employees of the International Treasury (IMF) urged central banks in Asia to implement more aggressive interest rate hikes to deal with excessive inflationary pressures.
According to the Asia-Pacific Director of the IMF, Krishna Srinivasan, inflation continues to peak with a spike in the cost of food and fuel following the outbreak of war in Ukraine.
Even though the inflation rate in Asia is not as bad as in other regions, Krishna underlines that price spikes in most countries have now exceeded the central bank's target.
In a row, several countries were advised to increase rates more aggressively with inflation continuing to develop on prices, excluding uncertain food and energy categories, to ensure stability.
For now, most developing Asian economies are experiencing capital outflows like they were in 2013, with bill yields rising as the Federal Reserve (Fed) hints that it will reduce its purchases early.
According to Krishna, India's largest outflow was recorded at $23 billion since Russia's invasion of Ukraine, followed by South Korea and Taiwan.
On the other hand, the executive director of the Center for Socio-Economic Research (SERC), Lee Heng Guie, stated that Malaysia is almost certain to accept the failure of the world and the United States (US).
The principle builds on a simple and not too deep GDP in-country output over the 6 to 8 months should the U.S. economy really crash next year.
The argument is, Malaysia's foreign trade will feel the impact of global humidity after the country's growth correlation has seen the global economy become more intact since 10 years ago.
Generally, the US economy continues to close in the 2nd quarter of the year with the Fed's aggressive monetary policy tightening situation to stem inflation.
It indirectly raises financial market doubts that the economy is in a slump.
