Inflation declined in the majority of developing countries in 2012, but remains high in some countries. The moderation in inflation, however, opened the way for easing of monetary policy, particularly in Asia and Brazil. Monetary stimulation was initiated. Since the beginning of the year, interest rates decreases were decided in China, South Korea, Indonesia, Thailand and the Philippines. Operating margins of Indian monetary authorities are, however, very limited, with inflation remaining structurally and cyclically high.
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