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Asian central banks turn hawkish

Asian policymakers turned decidedly more hawkish this week, with the central banks of Korea, Singapore and the Philippines, all tightening monetary policy aggressively. Further hikes across the region are likely in the near term, and we have made adjustments to some of our year-end policy rate forecasts. However, with inflation set to peak soon and growth likely to slow, tightening cycles are likely to be relatively short lived. We think most will be finished by early 2023 or even sooner.
China Drop-In (Friday, 15th July): Did China’s economy contract in the second quarter? How much stimulus is the government willing to pump in to drive a recovery? Join our China team for a briefing after the release of the NBS Q2 report on Friday. Register here.

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