Asia’s 1997 financial crisis won’t repeat itself, even as a slowing Chinese economy unnerves the region’s financial markets.
Inflation driven by prices of food and manufactured goods threatens to drive Indian interest rates higher this year, pushing investors away from corporate bonds, according to HSBC Holdings Plc.
India’s central bank needs to be less wary of the fallout of Europe’s debt crisis and raise interest rates to curb inflation stoked by growth, economists said.
Central banks in Southeast Asia may be forced to abandon this year’s monetary easing and raise interest rates before their north Asian peers in 2013, as rising inflation risks overshadow the current economic gloom.
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