Senior IMF official: Escalation of Middle East conflict to affect oil prices, impacting many Asian countries

The Director of the International Monetary Fund (IMF) Asia and Pacific Department warned on Wednesday, “the escalation of Middle East conflict to affect oil prices, impacting many Asian countries.”

Additional quotes

“Asian central banks may see scope to loosen monetary policy later this year as inflation moderates.”

“Average inflation in Asia fell to 2.6% in 2023 from 3.8% in 2022, with particularly swift progress in emerging economies.”

"Many regional central banks are on course to reach their inflation targets in 2024. Provided policymakers hold steady until inflation is firmly reanchored, scope for monetary easing may emerge later in the year.”

“Divergences ... China's near-zero price growth last year "fueling concerns about deflation ... and Japan's inflation will likely remain above the central bank's 2% target until 2025.”

“There is a risk that divergent monetary stances in the United States and in Asia would trigger sharp exchange rate movements also this year.”

“Escalation of Middle East conflict could affect oil prices, impacting many Asian countries.”