Photo: Hemant Mishra/MintHong Kong/Mumbai: Asia’s central banks are stacking the sandbags. Foreign-exchange reserves are being rebuilt as monetary authorities brace for the Federal Reserve’s third rate hike in six months. While the expected move has been well telegraphed, prolonged periods of Fed tightening can cause jitters for emerging markets. “Asia is strengthening its defenses,” said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. While all of that’s good news for central bank reserves in Asia, it doesn’t mean governments can afford to ease up on domestic reforms, said HSBC’s Neumann.

Source: Mint June 13, 2017 08:48 UTC