The Asian economy needs to be aware of the risks as the decade of decentralized monetary policy reduction by large banks is being phased out sooner than expected, said International Monetary Fund (IMF) Deputy Chief Executive Officer Kenji Okamura. These risks apply particularly to the most vulnerable economy, Okamura said. , without calling them.
The Asian economy is facing a choice between supporting strong growth and withdrawal in order to stabilize debt and inflation, he said. While the Bank of Japan policy opposes global change in monetary policy, major banks in the United States, Britain and Australia have raised interest rates recently.Okamura, Japan’s former deputy finance minister for international affairs, also said the COVID-19 epidemic, the Ukrainian war and strong global financial conditions would make this year a “challenge” in Asia.
The war was affecting Asia with higher commodity prices and slower European growth, he said. Speaking at his first press conference since becoming one of the four executives of the world lender last year, Okamura warned of the prospect of strong consolidation if the expected inflation continues to “stagnate”.”There is a risk that the expected inflation may require even stronger reinforcement,” he said. Okamura called for limited policies and clear communication.
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