Asia Economics Update Bank Indonesia cuts again, easing cycle nearing end A rebounding currency, subdued economic growth and inflation, and the Fed’s dovishness yesterday all fed into Bank Indonesia’s decision to cut its main policy rate for the third time in as many months... 17th March 2016 · 1 min read
Asia Economics Update What’s gone wrong in Sri Lanka? Sri Lanka’s request for an IMF loan should ease fears about a potential balance of payments crisis, but the mistakes that put the country in this position will need to be addressed. Most importantly... 16th March 2016 · 1 min read
Asia Economics Update Rate cuts in Korea can’t be ruled out The Bank of Korea (BoK) today left its policy rate unchanged at a record low of 1.50%. The pressure for a rate cut is building against a backdrop of softening economic data, but we are sticking with... 10th March 2016 · 1 min read
Asia Economics Update Malaysia holds rate, but all eyes on BNM governor succession Malaysia’s central bank (BNM) today kept its policy rate on hold at 3.25% at a monetary policy meeting that will be Governor Zeti’s last after 16 years at the helm. We continue to think rates will be... 9th March 2016 · 1 min read
Asia Economics Update High household debt another drag on Malaysia’s growth Malaysia’s high level of household debt is unlikely to trigger financial instability, but it will continue to be another constraint on growth. 7th March 2016 · 1 min read
Asia Economics Update Asian markets mixed, Indonesia top performer After a rocky start to the year, Asian markets have settled down over the last month as investors have pushed back their expectations for the next rate hike in the US and oil prices stabilised. 29th February 2016 · 1 min read
Asia Economics Update Sri Lanka’s tightening cycle just starting The central bank in Sri Lanka (CBSL) has delivered a surprise by hiking both its policy interest rates by 50bp. Against a backdrop of rapid credit growth, building price pressures and currency... 19th February 2016 · 1 min read
Asia Economics Update Bank Indonesia likely to cut one more time Bank Indonesia today cut its main policy rate by 25 basis points to 7.00%. We believe that one more cut is likely in this cycle. Today’s statement hints that, as long as the recent market calm... 18th February 2016 · 1 min read
Asia Economics Update Bank of Korea to maintain wait and see stance The Bank of Korea (BoK) left its policy rate unchanged at a record low of 1.50% today against a backdrop of heightened financial market volatility. While we can’t rule out a rate cut in the coming... 16th February 2016 · 1 min read
Asia Economics Update Philippines to keep rates on hold The decision by the central bank of the Philippines (BSP) to keep its main policy rate on hold at 4.0% came as no surprise. With growth picking up but inflation low, we doubt the central bank will be... 11th February 2016 · 1 min read
Asia Economics Update Korea’s debt binge to weigh on growth The sharp rise in Korea’s private sector debt over the past decade has raised concerns about financial stability. While there are good reasons to believe that a crisis is not in the offing, Korea will... 10th February 2016 · 1 min read
Asia Economics Update Thailand to keep rates unchanged in 2016 The Bank of Thailand’s (BoT) decision to keep its policy rate unchanged at 1.50% today came as no surprise. With the economy gradually recovering and the government stepping up efforts to support... 3rd February 2016 · 1 min read
Asia Economics Update Calm returns to Asian financial markets Asia’s markets were badly caught up in the global sell-off earlier in the month, and although sentiment seems to have settled down in recent days, most of the region’s equity markets are still down... 29th January 2016 · 1 min read
Asia Economics Update Key challenges await Vietnam’s new leadership Vietnam’s new top leadership team, which has just been unveiled, takes the reins at a key moment for the economy. Although short-term prospects remain good, further reforms are needed for the economy... 28th January 2016 · 1 min read
Asia Economics Update Malaysia puts fiscal discipline ahead of growth Malaysia’s government cut its spending plans for 2016 today in response to recent declines in global oil prices. While Malaysia’s commitment to fiscal discipline is encouraging, it will come at the... 28th January 2016 · 1 min read
Asia Economics Update Some respite for Korea’s export sector in 2016 A cyclical recovery in China’s economy and free trade agreements that came into force in late 2015 should provide a boost to Korean exports this year. But with Chinese companies making more of the... 22nd January 2016 · 1 min read
