Asia Economics Update Australia outlook strong despite the leadership upheaval International investors should not be concerned by the change of prime minister even though, by Australian standards, the events of this week have been unprecedented. Data on population trends, which... 25th June 2010 · 1 min read
Asia Economics Update New Zealand set for a sub-par upswing Data released overnight showed that New Zealand’s economy expanded again in Q1, albeit at a slower pace than at the end of 2009. The recovery should not come under serious threat in coming quarters... 24th June 2010 · 1 min read
Asia Economics Update Pakistan is struggling to retain IMF support The delay in implementing a new value added tax has soured relations between Pakistan and the IMF and means that the capital inflow needed to shore up the balance of payments will be slow in coming... 23rd June 2010 · 1 min read
Asia Economics Update Asian currencies set to rise further The shift to de-peg the renminbi against the US dollar, announced on Saturday, will probably bring further FX rate appreciation across Asia, even though China is likely to move slowly from now on. The... 21st June 2010 · 1 min read
Asia Economics Update Indonesia aims to manage capital inflows, not stop them Indonesia yesterday joined the regional trend and introduced new measures designed to reduce the volatility of capital flows and encourage foreign investment in longer term financial instruments. The... 17th June 2010 · 1 min read
Asia Economics Update The Philippines upswing remains in good shape Data published over the last few days have been mixed but the Philippines economic recovery still probably stayed strong in Q2. Fiscal consolidation can proceed slowly and the expansion will almost... 17th June 2010 · 1 min read
Asia Economics Update Korea leads the way on capital controls Curbs on capital flows recently announced in Korea are designed to reduce extreme swings in the won and are not an attempt to influence where the currency will move over the long run. Korea is a... 15th June 2010 · 1 min read
Asia Economics Update India set to hike rates again soon Data from India released today, and late last week, showed that inflation pressures have picked up again while the economic upswing has stayed strong. Further monetary tightening is only a matter of... 14th June 2010 · 1 min read
Asia Economics Update Korea will probably start to tighten in Q3 The Bank of Korea (BoK) left its policy rate at 2.0% today, as expected. The turmoil in the markets and the European debt crisis weighed heavily in the decision to stay on hold. However, the local... 10th June 2010 · 1 min read
Asia Economics Update New Zealand to move gradually from now on The Reserve Bank (RBNZ) earlier today lifted its cash rate by 25bp to 2.75%, as expected. The local economic upswing should continue, despite the increased external risks, but the recovery will... 10th June 2010 · 1 min read
Asia Economics Update Pakistan targets an ambitious fiscal tightening Pakistan’s annual budget, which was announced over the weekend, aims to narrow the budget deficit by one-two percentage points of GDP by mid-2011. While GDP is likely to accelerate and lift tax... 7th June 2010 · 1 min read
Asia Economics Update The Philippines looks set to tighten in Q3 The Philippines’ central bank (BSP) left the reverse repo rate unchanged at 4.0% today, as expected. The economic upswing should hold strong in coming months while the policy rate looks set to remain... 3rd June 2010 · 1 min read
Asia Economics Update Indonesia still on track to hike later this year Bank Indonesia (BI) left rates at 6.50% today, as expected. The economic upswing will stay strong but the high level of the rupiah is helping to hold down prices. Nevertheless, inflation will probably... 3rd June 2010 · 1 min read
Asia Economics Update Australia’s GDP slowdown likely to be short-lived Australia’s economy expanded for the fifth consecutive quarter in Q1 but at a slower pace than in late 2009. GDP should accelerate again soon with private sector investment set to take the lead... 2nd June 2010 · 1 min read
Asia Economics Update Thailand rates will probably move up in Q3 The Bank of Thailand (BoT) left its policy rate unchanged at 1.25% today, as was universally expected. The economy warrants higher rates but the political situation needs to stay calmer for longer. We... 2nd June 2010 · 1 min read
Asia Economics Update Australia’s central bank has more work to do The Reserve Bank of Australia (RBA) held its cash rate at 4.50% today, as expected. The risk of an extended pause in policy rates has increased. Nevertheless, we still forecast that the next move will... 1st June 2010 · 1 min read
