Graph 3  The picture is broadly similar elsewhere in Asia, where there has been a sharp recovery in industrial production and exports (Graph 4). Policy settings in the region remain stimulatory, particularly when viewed against the V-shaped recovery.
Over the past month or so, a number of countries – including India, Malaysia and Singapore – have taken steps to withdraw some of this stimulus. These are welcome developments given that one risk that has been getting some attention is the possibility that stimulatory policy settings remain in place for too long causing inflation pressures to build in Asia.