WB Chief Warns Potential Inflation Risk in E Asia
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World Bank chief Robert Zoellick warned Friday the fast growth in east Asian economies could face inflation risk next year if low interest rates are maintained.
"If you look at the east Asian economies, you're starting to get some signs of faster recovery but also potential inflation," Zoellick said in a press briefing in Istanbul, where annual meetings of the International Monetary Fund and the World Bank will be held on October 6-7.
China will face a challenge because their credit growth has been very large and its quick recovery could have a potential effect on their growth later in 2010, Zoellick told reporters.
He added that if east Asian countries kept interest rates low in line with the US Federal Reserve, they could have some inflationary bubble effect.
In its latest World Economic Outlook issued on Wednesday in Istanbul, the IMF forecast that China will lead Asia out of the economic recession by growing 8.5 percent this year and 9 percent in 2010.
(Xinhua News Agency October 2, 2009)