The poor prospects for domestic demand across large parts of Emerging Asia mean that regional growth is likely to slow over the next couple of years. However, provided exports continue to grow at a decent pace, the slowdown should be gradual. With growth set to ease and inflationary pressures subdued, Asian central banks look set to keep monetary policy loose. In contrast to the consensus, which is expecting rate hikes in most countries next year, we think policy rates will be left on hold, or in a few cases, cut further. We expect both currencies and equities to experience another good year in 2018, while bond yields are likely to remain low.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services