Shirakawa cautions on carry trade

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Masaaki Shirakawa, the governor of the Bank of Japan, on Monday became the latest Asian official to voice concern that low interest rates in advanced economies risked destabilising emerging markets.

Alluding to fears that low interest rates in the US are fuelling a dollar carry trade, Shirakawa said officials needed to be aware that "if the difference in the pace of recovery in emerging and advanced economies does not diminish, and if capital inflows from advanced economies continue for a protra

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