Asia Crisis Veteran Zeti Sees EM Resilience to ECB Action

The European Central Bank’s prospective quantitative easing is unlikely to be as disruptive to emerging markets as the Federal Reserve’s, Malaysia’s central bank chief said, signaling confidence developing nations can withstand the effects of unconventional monetary policy.

“In terms of their operations, it’s not going to be as significant as in the U.S., which has a greater influence,” Governor Zeti Akhtar Aziz, who guided Bank Negara Malaysia through the Asian financial crisis, said in an interview in Kuala Lumpur yesterday. Meanwhile, as the U.S. prepares to end its unprecedented stimulus that exacerbated global capital fluctuations, countries like Malaysia have improved their abilities to cope with volatile inflows and outflows, she said.