The threat of intensifying inflationary pressures to the recovery of con-nsumer demand has been a major theme across the Asia Pacific region nover the past quarter. Contractionary monetary measures were imple-nmented across the region, as governments look to tighten their reins on ninflationary pressures. Strong inflation and overheating pressures were nmajor concerns for the monetary policymakers, particularly in China and nIndia, as both countries engaged in aggressive monetary tightening to nkeep rising price pressures in check. Bearing out China’s discomfort in nthe stickiness of inflation, the People’s Bank of China recently hiked its ninterest rates by 25 basis points, which marks the third rate hike in 2011.
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