TOKYO -- Asian central banks that have spent 2022 battling inflation by jacking up interest rates are expected to shift their focus next year, changing the picture for investors as price increases slow and economies feel the impact of a global downturn.
Most central banks in the region have been less aggressive than the U.S. Federal Reserve -- which on Wednesday raised rates for the seventh time this year -- because inflation has not been as severe. While the rising dollar has given investors more incentives to shift money to the U.S. and has put pressure on Asia's currencies, monetary policymakers have responded with a mix of rate hikes, currency depreciation and market intervention. Improved current-account balances, reduced reliance on foreign debt and larger foreign exchange reserves have also helped them ride out the pressure.
