Economic activity in emerging Asia rebounded strongly in the final quarter of last year. However, there are signs that the recovery may be running out of steam. Our GDP tracker dipped slightly in January, while the most recent PMIs have also been weak. Over the past month, central banks in Vietnam and India have cut interest rates. With growth likely to remain weak and inflationary pressures relatively low, monetary policy across Asia is likely to remain loose for the rest of the year.
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