Of the 15 major central banks in the Asia-Pacific region, 13 have explicit numerical targets for inflation and 5 have made exchange rate stability a policy objective. While financial stability is not an explicit objective for most central banks, it is clearly an issue of concern given its implications for the real economy. This was possible because, despite better-than-expected economic growth and the spurt in oil prices, inflation was benign and well within the target range of central banks in most countries. At the same time, exchange rates were stable, with major regional currencies gaining against the United States dollar as capital inflows to the region rebounded.