Asia Economics Update Majority will boost Moon’s ability to enact reforms Adept handling of the current crisis has helped President Moon’s party to emerge from today’s National Assembly election with a majority, which should help breathe new life into his reform agenda... 15th April 2020 · 4 mins read
Asia Economics Update Indonesia to resume easing cycle if rupiah holds up Bank Indonesia (BI) today left interest rates unchanged at 4.5%, but the cut to the reserve requirement ratio (RRR) and dovish comments in the press conference suggest that further rate cuts are... 14th April 2020 · 3 mins read
Asia Economics Update Korea: QE won’t negate need for more fiscal stimulus The Bank of Korea’ (BoK) left rates on hold at 0.75% today and announced plans to purchase government bonds. There is scope for quantitative easing to have an impact, but there are limits to how... 9th April 2020 · 3 mins read
Asia Economics Update Counting the cost of shutdowns across Asia In recent days several governments from across the region have announced shutdowns or tightened measures already in place. The economic impact of these measures will be huge, with service sectors set... 1st April 2020 · 4 mins read
Asia Economics Update How far will inflation fall? Inflation will fall sharply across the region over the coming months as the effect of currency falls and supply-side disruptions are outweighed by the impact of falling oil prices and a slump in... 31st March 2020 · 3 mins read
Asia Economics Update Singapore: MAS reaching limits of monetary policy The Monetary Authority of Singapore (MAS) loosened policy today by reducing the slope of its policy band, and even though the outlook for growth and inflation is very downbeat, we don’t expect further... 30th March 2020 · 3 mins read
Asia Economics Update Singapore: massive fiscal stimulus won’t prevent slump Today’s massive fiscal stimulus package won’t prevent Singapore from falling into a deep recession in the first half of the year, but it should ensure that the economy is well-placed to bounce back... 26th March 2020 · 3 mins read
Asia Economics Update Slump in rupiah may prompt more aggressive action The slump in the rupiah poses a major threat to Indonesia because of the country’s high level of foreign currency debt. So far, the response of the central bank has been to step up its intervention in... 24th March 2020 · 3 mins read
Asia Economics Update Emergency rate cut in Thailand, sharp downturn looms With the growth outlook deteriorating rapidly, the Bank of Thailand today became the sixth central bank in the region to cut interest rates this week. The 25bp emergency rate cut takes the policy rate... 20th March 2020 · 2 mins read
Asia Economics Update Bank Indonesia will need to keep one eye on the rupiah Bank Indonesia cut interest rates today, but the slump in the rupiah in recent days means policymakers in the country will need to act more cautiously than other central banks in the region over the... 19th March 2020 · 3 mins read
Asia Economics Update Taiwan cuts rates, more easing likely In response to the rapidly worsening outlook for the economy, Taiwan’s central bank (CBC) today cut its key policy rate today by 25bps to 1.125% and announced other measures to support the economy... 19th March 2020 · 3 mins read
Asia Economics Update How bad will it get? South East Asia and China are likely to be the worst affected countries by the current crisis, with some places likely to see GDP contract by up to 5% this year. Only a few economies in the region... 19th March 2020 · 4 mins read
Asia Economics Update Philippines: more easing to come from the BSP The central bank in the Philippines is likely to ease further in the months ahead after opting to cut its main policy rate by 50bps today. The BSP has not yet introduced loan programmes or targeted... 19th March 2020 · 3 mins read
Asia Economics Update Pakistan slashes rates, further loosening to come In response to the rapidly worsening outlook for the economy, Pakistan’s central bank (SBP) today slashed its key policy rate by 75bp to 12.5%. With growth likely to slow sharply this year and... 17th March 2020 · 3 mins read
Asia Economics Update Bank of Korea’s next step likely to be QE The Bank of Korea today finally responded to the coronavirus outbreak by cutting the policy rate by 50bp and introducing a number of other measures to ease financing constraints. Further measures... 16th March 2020 · 3 mins read
Asia Economics Update Philippines capital city on “lockdown” over virus fears, rate cuts more likely The new restrictions on economic activity in Manila will further weigh on the country’s outlook and mean the central bank (BSP) will almost certainly cut interest rates again at its meeting on... 12th March 2020 · 2 mins read
