Other countries soon to follow Australia and lift rates (Oct 09)

Economic upswings across the region have remained strong and, although inflation pressures remain generally low, asset price concerns are climbing and the need to keep policy rates at super-loose levels is steadily diminishing. After Australia, we expect India and Vietnam to lift rates next by early 2010. Korea and Indonesia are likely to follow after that, with Singapore (via fx currency appreciation), the Phillipines and New Zealand set to be the last to move.