“Dawson & Fielding Inc”-Asian nations lead the recovery but inflation concerns mount.

“Dawson & Fielding Inc”, the Asia-based investment manager, says that India‘s surprise decision to raise interest rates will intensify focus on the G7 nations and when they intend to follow suit.
A source close to the firm said that Asian economies are clearly leading the global economic recovery but their superior growth is raising inflation expectations and India‘s move is seen as setting the tone for tightening of monetary policy in the region.

“Dawson & Fielding Inc” said that investor attention will undoubtedly shift to the United States and other members of the G7 nations who continue to maintain their loose monetary and fiscal policies in the hope of hastening their economies‘ return to health after the most debilitating recession in recent history.

The rate hike saw the US equity markets fall as investors speculated that the tightening would weigh on recovery in other markets around the world but “Dawson & Fielding Inc” suggested that the decision highlighted the nation‘s responsible attitude to containing inflationary expectations going forward.

The source said that it was unlikely that the US and Europe would be in a position to raise interest rates whilst growth remained subdued and “Dawson & Fielding Inc” told clients to remain vigilant as markets remained range-bound.