IMF 'carefully' monitoring capital flows to Asia

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images The International Monetary Fund explained on Monday it is ‘carefully’ monitoring massive capital flows into Asia and urged the region’s policymakers to guard against risks of overheating. The level of the inflows – which have sent Asian stocks and property prices skyrocketing – are close to or above historical trends in most economies including those in South-east Asia, the IMF highlighted. ‘We are seeing financial pressures – you may call them imbalances, or the risk of imbalances – rising,’ explained the director for the IMF Asia and Pacific Department, Anoop Singh. ‘And because these can worsen quickly, they certainly are being monitored very carefully. Therefore the challenge policy makers’ face is how to guard against the potential build-up of national imbalances while continuing to deliver appropriate support for growth.’ He concluded