Some Asia economies need rapid rate hikes to cool inflation: IMF

A senior IMF official says some Asian central banks will have to rapidly raise interest rates to prevent an “upward spiral” in inflation [File: Johannes P. Christo/Reuters]

Some Asian central banks must rapidly raise interest rates to prevent an “upward spiral” in inflation as the war in Ukraine drives surging fuel and food prices, an International Monetary Fund (IMF) official has said.

While inflation in Asia remains “moderate” compared with other regions, several economies will have to act quickly to avoid bigger hikes later on, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, wrote in a blog on Thursday.