United States stimulus tapering 'not negative for Asean': DPM Tharman
The scaling back of United States stimulus measures and tightening of US monetary policy, when they happen, will not be a bad thing for Asean economies, Deputy Prime Minister Tharman Shanmugaratnam said on Friday.
Mr Tharman, who was speaking at the inaugural Network Asean Forum at the Shangri-La Hotel, noted that it is not in anyone's interest for very low global interest rates to continue indefinitely, and that these low rates have led to a build-up of financial imbalances in Asia.
His comments come as Asian markets are in flux, with investors pulling out their funds from the region in anticipation of the US Federal Reserve's tapering of its bond-buying programme. Also known as "quantitative easing" or QE, the programme has pumped massive amounts of liquidity into global markets over the past three years.
"The unwinding of QE would also take place together with a recovery in the US, and is not in itself a negative for Asean economies," Mr Tharman said.