Morgan Stanley Says Inflation in Asia Set to Peak This Quarter
- Supply imbalances are reversing, food costs falling, Ahya says
- Rates may not need to be as high as expected to slow growth
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Bets that Asian central banks will keep ramping up interest rates are overdone as inflation is likely to peak this quarter, according to Morgan Stanley.
Consumer prices may rise less rapidly than currently expected given supply imbalances are reversing, global food costs have fallen and wage pressures will be muted, economists led by Chetan Ahya wrote in a note Wednesday. Price gains may be stickier in Australia, South Korea and Singapore while remaining within the comfort zone in China, they said.