ôAsia is joining the rest of the world in facing tremendous inflation problems,ö says Tao, who notes that inflation will persist in the region even if oil prices stabilise. After all, food is a major driver of inflation in Asia, especially in the southeast.
Tao doesnÆt expect Asian central banks to significantly tighten monetary policy to help curb consumer prices because they are too worried about the impact of high interest rate on exports. ôThey will likely take a wait-and-see attitude,ö he says.
Amid this backdrop for the region, Tao expects the growth risks in...
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