Asia Economics Update Emerging Asia set for weak recovery despite policy easing Asia’s strong rebound from the 2008-09 global financial crisis took many by surprise. Despite the policy easing now underway in Asia, the region’s recovery from the current global crisis is unlikely... 13th August 2012 · 1 min read
Asia Economics Update Pakistan’s central bank in a difficult balancing act The State Bank of Pakistan (SBP) cut its discount rate by 150bp to 10.5% today. Monetary policy is likely to be loosened further in an effort to revive growth, even at the risk of stoking already-high... 13th August 2012 · 1 min read
Asia Economics Update Bank of Korea not done cutting rates The Bank of Korea (BoK) held its policy rate at 3.0% today. Nonetheless, we believe that global growth will continue to disappoint and that more policy stimulus will be needed soon to support Korea’s... 9th August 2012 · 1 min read
Asia Economics Update Australia pauses, but one more rate cut is on the way The Reserve Bank of Australia (RBA) held its policy rate at 3.5% today. It probably won't be long until the RBA cuts again, but it is nearing the end of its loosening cycle. 7th August 2012 · 1 min read
Asia Economics Update Indonesia continues to outperform Indonesia’s economy picked up slightly in the second quarter, despite weaker export demand. Indonesia is weathering the global slowdown well compared with other countries in the region. We expect GDP... 6th August 2012 · 1 min read
Asia Economics Update Manufacturing deteriorates further The July PMIs showed that conditions within Asia’s manufacturing sectors are getting worse. A silver lining is that price pressures continue to ease, which should make more policymakers comfortable... 1st August 2012 · 1 min read
Asia Economics Update Taiwan’s poor export outlook to prompt policy stimulus Taiwan’s export-oriented economy is struggling amid the global slowdown. We expect the global backdrop to remain difficult, while local inflation should stay among the lowest in Asia. Accordingly, we... 31st July 2012 · 1 min read
Asia Economics Update Reserve Bank of India takes hawkish tone While today’s decision to leave interest rates unchanged was expected, the accompanying statement is a bit more newsworthy. It makes gloomy reading. The central bank cut its growth forecast, increased... 31st July 2012 · 1 min read
Asia Economics Update What will be the effect of India’s drought? India is less vulnerable to a failed monsoon than it was a decade ago. But, if it persists, this year’s disappointing rainfall may still have a significant negative impact on output, inflation and the... 30th July 2012 · 1 min read
Asia Economics Update Korea’s weak growth to prompt more policy loosening Today’s GDP data from Korea show that the economy grew at a sub-trend pace in the second quarter. Given that tackling inflation is no longer policymakers’ top priority, more stimulus measures are... 26th July 2012 · 1 min read
Asia Economics Update Rate cut in the Philippines, more loosening likely by year-end The Philippines’ central bank (BSP) today cut its policy rate by 25bp to 3.75%. With inflationary pressures set to remain low and global demand likely to disappoint this year, we expect further policy... 26th July 2012 · 1 min read
Asia Economics Update Indian inflation eases slightly, further rate cuts on horizon There has been no let-up in the bad news from India. Economic activity remained very weak in the second quarter of the year while inflation is still above 7%. This combination is set to persist in the... 20th July 2012 · 1 min read
Asia Economics Update How would Asian bonds perform if risk aversion increased? Asian sovereign bonds have performed well in the years since the 2008-09 global crisis, offering investors reasonable yields without excessive risk. But some may still face sell-offs if global... 19th July 2012 · 1 min read
Asia Economics Update Singapore set for sub-trend growth Today’s GDP data show that Singapore's economy contracted in Q2, as manufacturers struggled. The figures back up our view that this will be a lacklustre year for the Singapore economy, and we retain... 13th July 2012 · 1 min read
Asia Economics Update Bank of Korea cuts rates, further cuts likely soon The Bank of Korea (BoK) cut its policy rate to 3% today. It was a surprise that the move came at this meeting, but we have long held the view that rates would need to be cut this year to support the... 12th July 2012 · 1 min read
Asia Economics Update Bank Indonesia keep rates on hold, no change likely soon Bank Indonesia (BI) today left its main policy rate unchanged at a record low of 5.75%. Although inflation is likely to rise sharply in the second half of the year, with global demand set to remain... 12th July 2012 · 1 min read
