The Fund advised Pakistan to unwind the increased government borrowing from the SBP, which would support monetary tightening
The QCB will - in line with the Fed - resume monetary tightening
over the coming quarters as economic conditions improve, in order to protect the riyal's dollar peg, the report said.
The Bangko Sentral ng Pilipinas (BSP) will likely jack up its key interest rates by a total of 75 basis points this year to curb upward pressure on consumer prices, with the monetary tightening
possibly coming as early as Thursday's monetary setting, an economist from Dutch financial giant ING said.
The recent CPI data is strengthening expectations the Bank of Korea will take a "gradual path" in its monetary tightening
policy throughout this year since its November rate hike.
The gradual, anticipated, and clearly communicated nature of the fed rate hikes, and the general absence of monetary tightening
in the region, limit short-term impact of the US December rate hike on Asian financial markets," the economists said.
According to S&P, the emerging market sovereigns most at risk from faster-than-expected monetary tightening
are, in descending order: Venezuela, Bahamas, Mozambique, Montenegro, Turkey, Ethiopia, Pakistan, Kenya, Oman and Sri Lanka.
In the latest quarterly issue of the Asia Bond Monitor, ADB cites strong macroeconomic fundamentals and tightening liquidity as the main sources for rising yields across most emerging East Asian bond markets, but noted that further monetary tightening
by advanced-economy central banks will require vigilance by the region's financial market regulators.
Tomas Holub said that the Czech koruna's slow appreciation is allowing policy makers to raise interest rates faster because the currency is not delivering the monetary tightening
that the economy needs.
This means that growth in the GCC may not keep up with monetary tightening
6% as greater-than-anticipated fiscal and monetary tightening
look poised to weigh on growth substantially in the year ahead.
According to NBG, the tightening of the monetary policy must have a positive effect on the decrease in inflation expectations and no further monetary tightening
is anticipated for the coming period unless more shocks take place.
Looking at the monetary tightening
that began in February 1994 and June 2004, the dollar strengthened substantially in both cases before the first rate hike, but then weakened by around 8 percent (as gauged by the Fed's dollar index) in the subsequent six months.