Rates have much further to fall (Oct 08)

The dramatic events in global financial markets in recent weeks have increased fears about the impact on the wider economies, while the collapse of commodity prices has swiftly put to rest lingering concerns about inflation. As a result, Asian central banks will likely cut rates much faster and further than previously expected in order to shield their economies from a steeper downturn. China, Taiwan, Australia and Korea have cut rates over the past month. It won’t be long before others follow suit.