MANILA : Asia's economic growth prospects will get a strong boost from the US Federal Reserve's hefty cut in interest rates, Asian Development Bank president Haruhiko Kuroda said Wednesday. "The latest decision by the US Federal Reserve would be welcomed by many in the region because that would first of all reduce the financial sector turmoil," he told a news conference on the sidelines of an aid conference in Manila.
"It would definitely improve the prospect of sustained strong economic growth in the US and would also be beneficial particularly for the emerging economies of Asia," he added.
"I would say that the decision would be greatly appreciated by many economies and the financial sector in the region."
The US central bank on Tuesday cut the federal funds rate, which banks charge each other for overnight loans, by a hefty half point to 4.75 percent, the first reduction in four years. The move was cheered by financial markets around the world.
Manila-based ADB, downplaying the chances of a US recession, on Monday raised its economic growth forecasts for developing Asia this year to 8.3 percent from 7.6 percent in March.
Next year's growth should be 8.2 percent, up from the earlier forecast of 7.7 percent, it said. - AFP/ch
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