Asia-Pacific News

8 in 12 Asian Countries to Face Negative Real Rates: Analyst

CNBC.com

Eight in 12 Asian countries will have negative real interest rates, said Rob Subbaraman chief economist for Asia at Nomura International, and that could lead to asset bubbles in the region.

"The big risk for Asia this year, is interest rates (are going) up too slowly," Subbaraman said on CNBC's Asia Squawk Box.

Negative real interest rates refers to a situation where the country's inflation rate is greater than the interest rate.

"One of the biggest challenges for Asia is just them attracting so much capital inflows," he explained, and that has resulted in "a very swift recovery" --

putting pressure on Asian currencies to appreciate.