Asia Central Banks May Need to Keep Hiking If Core Inflation Stays High, IMF Says

(Bloomberg) — Asia’s central banks may need to raise interest rates further if core inflation does not show clear signs of returning to target, according to the International Monetary Fund.

Policymakers must “stay alert” despite a slowdown in headline inflation, as the core gauge — which strips out transitory and volatile items — still runs above target, IMF’s Krishna Srinivasan, Thomas Helbling and Shanaka J. Peiris wrote in a blog post published on Tuesday.