Financial conditions have already been tightening for many emerging market economies, the BIS report said. Government bond yields – a proxy for the cost of borrowing – have risen, especially outside emerging Asia, while a broad-based weakening of EM currencies has compounded inflationary pressures.in the short run and some impact on economic activity was inevitable, particularly in the first quarter of 2022, Borio said.
“This of course makes the trade-offs the central banks are facing slightly more complicated than they were before,” he added, although dealing with such complications was something policymakers were now well used to.In one, the Swiss-based forum said bank-like rules were needed to stop investment funds from destabilizing finance in market crises.
It warned policymakers risked falling behind the curve in regulating entities such as hedge funds, pension funds, insurance companies, and money market funds which collectively account for half of global financial activity. Asia’s emerging economies should improve oversight of foreign exchange liquidity risks, too, and make currency hedging more flexible as growing dollar investments make the region more vulnerable to currency swings.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: interaksyon - 🏆 24. / 51 Read more »
Source: TheManilaTimes - 🏆 2. / 92 Read more »
Source: rapplerdotcom - 🏆 4. / 86 Read more »
Source: cebudailynews - 🏆 8. / 71 Read more »
Source: ABSCBNNews - 🏆 5. / 83 Read more »
Source: TheManilaTimes - 🏆 2. / 92 Read more »