A tale of two worlds

Across a growing number of emerging market economies, central banks are becoming more concerned about how soon and how fast they should tighten monetary policy.

 Perhaps most telling are the recent rate increases in India and Brazil, two major developing economies where prospects look good. But there are many others who are tightening as they face the challenges of economic recovery. In Asia, in the past month alone, South Korea, Taiwan, Thailand and Malaysia have joined India in raising rates. Of these, it was the first rate hike in the cycle for Taiwan, South Korea and Thailand. In contrast, India and Malaysia have been hiking for some time.