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Korea spending boost, Malaysia rate meeting

Korea’s proposed budget for 2022 indicates that fiscal policy will remain supportive next year. This should give the BoK added reassurance that the economy will be able to withstand further rate hikes. Meanwhile, the central bank of Malaysia’s meeting on Thursday is likely to be a close decision. A rate cut cannot be ruled out, but with GDP set to rebound strongly over the coming months, we think the policy rate will be left unchanged.

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