Fearing inflation, Asia Pacific saying bye to low interest rates | Business and Economy

EDITOR’S ANALYSIS

The region is moving to address inflationary warning signs after avoiding skyrocketing inflation seen in the United States.

The Asia Pacific’s run of record-low interest rates is fading into history.

After holding back on tightening monetary policy to avoid derailing the post-pandemic economic recovery, central banks in the region are finally deciding that the spectre of rising inflation can no longer be ignored.

Hawkish central banks like the Bank of Korea and the Reserve Bank of New Zealand have begun tightening in earnest, this week delivering rate hikes that surpassed market expectations.

The Monetary Authority of Singapore – which controls the money supply through exchange rates due to the city-state’s heavy dependence on trade – also announced a significant tightening of policy.

Meanwhile, central banks in emerging Asian economies like the Philippines,…