Asian central banks brace for Fed to lift rates this month

Hong Kong

ASIA'S central banks are bracing themselves for the US Federal Reserve to lift interest rates this month for only the third time in a decade.

Higher US borrowing costs ripple through Asia by driving up bond yields, reducing the region's appeal to foreign investors and thereby pressuring local currencies. In response, some Asian central banks historically have faced pressure to shield their economies with rate hikes of their own.