While developed countries are still looking for sings of growth, developing counties like China and India are experiencing their first bout of GDP growth rates, however, anchoring inflation in these emerging markets remains a key challenge.

On Friday China's central bank asked banks to set aside more cash in order to restrain inflation and damp asset prices, in a second such step in a month. The reserve requirement will rise 50 basis points, or 0.5 percentage point, with effect from February 25, the People's Bank of China said.

The Reserve Bank of India too increased reserve ratio spread over February in two phases by 75 basis points draining out excess liquidity from the financial system.

Chinese policy makers are trying to slow the pace of credit growth after banks extended 19 per cent of this year's allocated $1.1 trillion lending target in January itself and property prices escalated the most in 21 months.