of the major central banks in the asiapacific region have explicit numerical targets for inflation and 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 betterthanexpected 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