Tighter monetary policies: are Asian central banks reading the bussiness cycle properly?

- "After India, Taiwan, Malaysia and Korea, it is now Thailand’s turn to raise its key interest rates by 25 bp mid July. There seems to be a widespread exit from accommodating monetary policies in nearly all emerging Asian countries."
- "But while monetary authorities (specifically, Korea and Thailand) indicate that monetary tightening should continue in a strong growth environment, we wonder about the benefit of further tightening."
- "While monetary tightening seems justified in India where inflation keeps on rising, it seems more debatable in other countries where growth is still fragile and any swift action to tighten monetary policy while the economic cycle is at inflection point could lead to future regrets."
Natixis Flash Economics 371 20100725