Emerging market central banks must use conventional monetary policy tools to counteract overheating pressures from foreign capital inflows, the International Monetary Fund (IMF) has said.

In its Regional Economic Outlook for Asia and the Pacific, the Fund said Asia's rapid recovery from the global economic crisis had created "pockets of overheating" across the region and that "further monetary tightening" was necessary in economies that faced inflation pressures.

The fund added that although the