QE will become part of Em Asian central bank toolkits

With policy rates close to the zero bound in Korea, Taiwan and Thailand, we think it is only a matter of time before central banks in these economies implement full-blown quantitative easing (QE) programmes. Malaysia may not be far behind either. But given the small scope to flatten yield curves, there is a limit to what QE can achieve. The onus will therefore remain on fiscal policy to support economic recoveries.