Asian economies are in trouble but a 1997-style crisis is unlikely kesq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kesq.com Daily Mail and Mail on Sunday newspapers.
Consumer prices might increase less rapidly than currently expected given that supply imbalances are reversing, global food costs have fallen and wage pressures are being muted, Morgan Stanley economists led by Chetan Ahya wrote in a note on Wednesday.
Price gains might be stickier in Australia, South Korea and Singapore, while remaining within the comfort zone in China, they said.
Morgan Stanley’s prognosis might offer some comfort to Asia’s stock and bond traders, who have been rocked by fears that regional central banks would follow the US Federal Reserve with aggressive rate hikes.
The forecast also coincides with speculation that a