The International Monetary Fund (IMF) has warned Asian countries to keep their policies in balance amid ongoing Middle East energy disruptions. The IMF Director for Asia Pacific, Krishna Srinivasan, warned against increasing energy subsidies and suggested that countries should instead provide budget neutral and targeted fiscal support and maintain fiscal discipline. He also suggested that while some markets like Thailand and China can delay tightening monetary policy due to deflationary conditions, other markets like Australia, including Australia, need to start tightening now. Srinavisan warned that while the IMF's global GDP outlook for 2026 was cut to 3.1%, the more severe growth scenarios are becoming more likely due to ongoing energy disruptions and lack of a clear resolution to the conflict.