Asia’s resilience to U.S. tariffs may be challenged by a rally in the dollar and rebounding low interest rates, warns IMF official. If U.S. Federal Reserve continues to cut rates, Asian central banks could loosen monetary policy. Low interest rates have helped Asia’s economy weather higher tariffs, but financial conditions could change. IMF expects Asia’s economy to grow by 4.5% in 2025, with risks tilted to the downside. Asia may see additional monetary easing to control inflation and ensure stability. Asian central banks’ independence crucial for anchoring inflation expectations and maintaining public trust.

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