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By Christine Gaylican, Opalesque Asia:

Credit rating and research group Standard & Poor's (S&P) urged emerging market economies to maintain their existing fiscal stimuli measures so as not to disrupt an anticipated regional recovery.

A day after Australia tightened its monetary policies by raising rates by a quarter point to 3.25% from a 49-year low of 3% (Source), S&P's Asia-Pacific chief economist Subir V. Gokarn warned that China and the rest of the emerging nations should not follow suit-at least until within the next five to six months.

Gokarn told Opalesque in a telephone interview today that though "the region's economic downturn has bottomed out, an early exit from pump-priming activities could still jolt the steady pace of recovery in the region."

He noted: "Emerging markets led by China, India and other member Asean countries have committed on a gradual global recovery, which will provide an additional boost in the second half of 2009 until mid-2010. The region is still facing the challenge of offsetting slow external demand by creating enough domestic demand for local goods."

In a September-09 commentary, Gokarn said the fiscal policies brought regional growth during the second quarter, which also saw an increase in domestic demand.

"[The second] quarter marked the beginnin......................

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