South Korea tipped to lead Asia’s exit from rising interest rates

TOKYO — Asian central banks which have spent 2022 battling inflation by jacking up rates of interest are anticipated to shift their focus subsequent yr, altering the image for buyers as worth will increase sluggish and economies really feel the influence of a worldwide downturn.

Most central banks within the area have been much less aggressive than the U.S. Federal Reserve — which on Wednesday raised charges for the seventh time this yr — as a result of inflation has not been as extreme. Whereas the rising greenback has given buyers extra incentives to shift cash to the U.S. and has put stress on Asia’s currencies, financial policymakers have responded with a mixture of price hikes, foreign money depreciation and market intervention. Improved current-account balances, lowered reliance on international debt and bigger international alternate reserves have additionally helped them experience out the stress.