Economics
Asian Central Banks Exhale as Volatile Capital Flows Steady
- Money fled the region during depths of coronavirus crisis
- Central banks had to slash rates and use other emergency tools
Bank of Thailand headquarters in Bangkok.
Photographer: Dario Pignatelli/Bloomberg
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Asia’s stabilizing financial markets are allowing the region’s central banks to exhale as currencies find their feet and investor money returns.
It’s a crucial reprieve after unprecedented outflows from emerging markets and currency turmoil that followed the coronavirus outbreak. As countries slowly begin reopening and the Federal Reserve likely pauses for now, the pressure is off central bankers in the region to cut interest rates even lower.