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You are here: Home / Asian markets mostly up as Fed rate forecasts ease inflation fears

Asian markets mostly up as Fed rate forecasts ease inflation fears

(AFP) HONG KONG – Investors pushed most Asian markets higher Friday on easing concerns about runaway inflation and an overheating economy after the Federal Reserve officials brought forward their forecasts for hiking interest rates. With the post-pandemic recovery well under way in most countries as vaccines roll out and containment measures are eased, the general mood across trading floors is positive and observers are predicting equities will continue the rally that started in April 2020. The blockbuster growth enjoyed this year has been tempered by worries that a surge in buying spurred by pent-up demand for goods would combine with supply constraints and bottlenecks to send prices rocketing. That, in turn, had raised concerns central banks would either have to tighten their ultra-loose monetary policies earlier than flagged or would move too slowly and let inflation run out of control, forcing them to hike rates at a sharper, quicker pace. After Wednesday's Fed meeting, officials' "dot plot" forecast for rates showed they were now more likely to lift in 2023 — a year earlier than first suggested — soothing worries about runaway prices, for now. Some policymakers had projected lift-off as soon as 2022. While higher borrowing costs make investing… Read full this story

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Asian markets mostly up as Fed rate forecasts ease inflation fears have 290 words, post on business.inquirer.net at June 18, 2021. This is cached page on Vietnam Colors. If you want remove this page, please contact us.

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