Therefore, Asian emerging economies have proceeded with the gradual rise in policy rates to create an environment for sustaining high growth. If the previous accommodative policy conduct – referred to as “behind the curve” – prolongs and high inflation takes hold, this will have a negative impact on the economy.
Thus, in order to prevent such negative impact, it is important to act ahead of time. As Asian emerging economies are the driving force behind global economic growth, attention is being paid to their potential future actions. Lastly, European economies are recovering moderately led by exports, driven in particular by Germany and other major economies.