As fears mount over the outlook for the global economy and inflationary pressures continue to ease, policymakers across the region are increasingly looking to support demand. Over the past month, governments in the Philippines and Malaysia have announced big increases in spending, while the central banks of Indonesia and Pakistan have cut interest rates. With many of Asia’s export-orientated economies vulnerable to a downturn in global demand, we forecast it is only a matter of time before other central banks start to cut rates. The two exceptions to this are India and Vietnam, where more policy tightening is likely amid persistently high inflation.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services