Asian central bankers will likely pause measures to contain high inflation until global market turmoil subsidies, the chief economist at the Asian Development Bank said. A plunge in equity and commodities prices during the last week and growing concern the US could fall back into recession will probably convince policymakers to halt interest rate hikes and currency appreciation, at least temporarily, the ADB's Changyong Rhee said in an interview with The Associated Press.
"They will probably stop tightening for the next few weeks and months," Rhee said. "Once the market stabilises, they will have to think about inflation again." Asian economies, excluding Japan, grew more in the first half than the ADB had forecast, but prices rose faster than expected as well, Rhee said. For the past year, Asian governments have sought to dampen quickening inflation with higher interest rates, stronger currencies and slower spending growth.