The possibility of the U.S. tapering its quantitative easing (QE) program has resulted in large fund flows out of Asia, but the CEO of Southeast Asia’s biggest lender, DBS, says its impact on the region’s economies is overstated.
Piyush Gupta, CEO of DBS told CNBC that if Asian economies slow down by a percent or two from the tapering of the U.S. Federal Reserve’s monetary stimulus, it won’t be the “end of the world” for the region’s countries.
“I think the markets are running ahead of themselves,” Gupta said on the sidelines of its Asian Insights Conference in Singapore on Friday. “We’ve seen the story before. QE1 came to an end, QE2 came to an end, [and] QE3 is a tapering off process. So, I certainly don’t believe that the macroeconomies in Asia are going to fall off a cliff.”
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