Singapore is halfway through a tightening cycle but nothing's out of control:DBS

Asia's central banks are still behind the curve but DBS is not talking crisis proportions.

In a statement, DBS said, the Asia-10 delivered some 22 rate hikes (or tightenings in currency regimes in the case of Singapore) in 2010 and has delivered another 5 so far in 2011.

With inflation still acceleratng and interest rates still not back to normal, we expect another 34 hikes (or currency adjustments) by year-end. That means we're 27/61sts - call it a tad less than half - of the way through the cycle.

By the end of year, rates should be another 100-125bps higher than they are today in most countries in Asia.

So long as Asia delivers what is expected here, DBS thinks this will do the trick. Inflation should peak in late-summer or early-autumn and begin to ease, though probably should peak in late-summer or early-autumn and begin to ease, though probably only modestly, in 3Q and 4Q this year.