Asian central banks must realign the institutional framework to face these repercussions while addressing the challenges of the highly intertwined, multidimensional crisis on economic growth. 31. In conclusion, let me reiterate that there is now a broad consensus that slowdown of the US and Europe is likely to have a more distinct impact on Asia.
For example, the decline in term premiums in the Treasury market of late may have contributed to keeping long-term interest rates relatively low and, consequently, may have supported the housing sector and consumer spending more generally. Also, risk premiums may be, in part, a manifestation of investor sentiment, which in turn may be correlated with consumer and business sentiment.