Price pressures across Emerging Asia are continuing to ease. While headline inflation has been on a broadly downward trend since around the third quarter of last year, the most encouraging development in recent months has been the first clear evidence that core inflation is also on the way down. With further falls in both the headline and core rate likely over the coming months and policymakers starting to sound more dovish, we don’t think it will be long before other countries follow the lead of Vietnam by cutting rates.
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