Global tide of tightening comes faster than expected IMF
Widening gap in interest rates behind yen weakness
Echoes view on balance yen depreciation helps Japan

TOKYO, May 20 Reuters Asian economies must be mindful of spillover risks as a decade of unconventional easing policies by major central banks is unwound faster than expected, International Monetary FundIMF Deputy Managing Director Kenji Okamura said.

This risk applied particularly to the most vulnerable economies, said Okamura.

Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilise debt and inflation, he said.

The Bank of Japan39;s easing policy which the IMF has described as quite effective runs counter to a global shift towards monetary tightening, with central banks in the United States, Britain and Australia having already raised interest rates.

The widening gap between Japanese and U.S. interest rates has been a major factor behind the recent yen depreciation to twodecade lows.

You can mostly explain the recent movements, especially the last month, in the yen based on essentially tighter global monetary policy including the U.S. Federal Reserve, said Ranil Salgado, assistant director and Japan mission chief at IMF39;s Asia and Pacific Department.

The yen depreciation on balance helps Japan, Salgado added, echoing views of BOJ Governor Haruhiko Kuroda.

Okamura, a former Japanese vice finance minister for international affairs, said the COVID19…