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Asia's central banks finally take a welcome lead

India's rate hike is the latest of several timely moves in volatile conditions

| India
The Reserve Bank of India Gov. Urjit Patel has shown he is ready to act fast on economic rather than political logic.   © Reuters

Urjit Patel's wish may be Jerome Powell's command. Last week, the Reserve Bank of India (RBI) governor pleaded with his U.S. counterpart to scale back planned interest rate hikes.

As Patel wrote in a Financial Times op-ed, emerging economies are in a state of "upheaval" amid a "double whammy" from Washington. One threat: a borrowing binge related to President Donald Trump's $1.5 trillion tax cut. The other: how the Fed's shrinking balance sheet is threatening to squeeze Asian markets.

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