Asia Economics Update Currency strength one reason Asian rates will stay low, for now Currency strength in Emerging Asia has been a factor in the region's recent wave of policy loosening. It appears to be undermining export competitiveness and has helped push inflation down further... 25th March 2015 · 1 min read
Asia Economics Update Asia does not need to follow the Fed's lead The first rate hike in the US looks to be only a matter of months away. But local factors, not the actions of the US Federal Reserve, will determine the next moves by Asia's central banks. 19th March 2015 · 1 min read
Asia Economics Update Indonesia leaves rates on hold, but further loosening likely soon Having surprised markets last month with a rate cut, Bank Indonesia (BI) left its key policy rate on hold today at 7.50%. Although we expect to see further rate cuts this year, the pace of easing is... 17th March 2015 · 1 min read
Asia Economics Update Credit growth needs to slow further We have been warning for some time that parts of Asia are experiencing an unsustainable credit binge, and that credit growth will need to slow for a crisis to be avoided. Encouragingly, credit growth... 12th March 2015 · 1 min read
Asia Economics Update Korea's rate cut likely marks end of cutting cycle The Bank of Korea (BoK) reduced its policy rate by 25 basis points to 1.75% today, adding to a growing list of central banks that have cut rates this year. But Korea's high household debt levels... 12th March 2015 · 1 min read
Asia Economics Update Thailand's rate cut likely to be a one-off The Bank of Thailand (BoT) joined the global shift toward monetary loosening today, cutting its policy rate by 25bp to 1.75%. Looking ahead, we think the BoT will keep rates on hold in the coming... 11th March 2015 · 1 min read
Asia Economics Update Malaysia unlikely to join the rate-cutting club Despite a recent drop in inflation, the Malaysian central bank (BNM) kept its policy rate on hold at 3.25% today. While several central banks in the region have eased monetary policy this year, we... 5th March 2015 · 1 min read
Asia Economics Update Asian equity markets continue good run Equity markets in Emerging Asia recorded another month of solid gains in February. Currencies did not fare as well, particularly the Indonesian rupiah, which has continued to weaken against the US... 27th February 2015 · 1 min read
Asia Economics Update Tight labour market in Taiwan providing boost to consumption A tight labour market in Taiwan is feeding through to stronger wage growth, which in turn is providing a boost to household consumption. The improving prospects for the consumer sector are a key... 26th February 2015 · 1 min read
Asia Economics Update Aggressive rate cuts unlikely in Indonesia With inflation set to stay elevated until the end of the year and the current account deficit likely to remain a source of vulnerability, today’s rate cut by Bank Indonesia is unlikely to signal the... 17th February 2015 · 1 min read
Asia Economics Update Household debt concerns to keep Korean rates on hold The Bank of Korea (BoK) today left its policy rate on hold at 2.0% after the government softened its pressure for further loosening. Looking ahead, we think persistent concerns about high household... 17th February 2015 · 1 min read
Asia Economics Update Philippines unlikely to join Asian rate cutting cycle Despite the recent drop in inflation, the central bank in the Philippines is unlikely to join a number of other central banks in the region that have loosened monetary policy since the start of the... 12th February 2015 · 1 min read
Asia Economics Update Rate cut in Australia won't be the last The Reserve Bank of Australia (RBA) cut its cash rate for the first time since mid-2013 today, taking it down by 25 basis points to 2.25%. Given the RBA’s change of stance and the likelihood that the... 3rd February 2015 · 1 min read
Asia Economics Update Asian equity markets make winning start to 2015 Emerging Asian equity markets have got off to a strong start to the year, while the performance of Asian currencies has been much more mixed. 30th January 2015 · 1 min read
Asia Economics Update New Zealand's central bank takes a more neutral stance The Reserve Bank of New Zealand (RBNZ) kept its policy rate at 3.5% today and suggested there is now far less certainty its next move will be a hike. We are not expecting any changes in 2015 or 2016. 29th January 2015 · 1 min read
Asia Economics Update Malaysia’s rate pause to continue through 2015 The Malaysian central bank (BNM) unsurprisingly kept its policy rate on hold at 3.25% today, and is unlikely to make any changes during the rest of this year. There are some concerns about the pace of... 28th January 2015 · 1 min read
