Asia Economics Update Thailand slipping into recession, rates to fall to 1% Today’s decision by the Bank of Thailand to cut official rates by a larger-than-expected 100bp to 2.75% is likely to be the first of a series of moves by the central bank to counter the possibility of... 3rd December 2008 · 1 min read
Asia Chart Pack Asia braces for worst slowdown since 1997 crisis (Nov 08) So much for decoupling. With the world headed for its worst recession since the 1930s, even the most resilient economies in the region will slow. We now expect growth in Asia ex-Japan to slow to... 12th November 2008 · 1 min read
Asia Economics Focus Bank of Korea to cut rates to a historic low of 1.5% High indebtedness, dysfunctional credit markets, and the prospect of a deep and prolonged global slowdown will drag Korea into its first recession since the Asian financial crisis of 1997. We expect... 31st October 2008 · 1 min read
Asia Economics Update India’s central bank pauses for breath, cuts to resume shortly Today’s decision by the Reserve Bank of India (RBI) to leave policy rates on hold was widely expected after recent actions proved successful in calming India’s money markets. Nonetheless, with... 24th October 2008 · 1 min read
Asia Economics Update Korean bailout positive but won't prevent slowdown The announcement of a massive $130bn (13% of GDP) liquidity support package by the Korean authorities over the weekend should calm the markets and boost the currency in the short run, but it won’t... 20th October 2008 · 1 min read
Asia Economics Update India tries to boost investor confidence with big rate cut Today’s unexpected 100 basis point (bp) cut by the Reserve Bank of India (RBI) in the key repo lending rate, to 8.0%, is intended to boost investor and consumer confidence. But given that this is the... 20th October 2008 · 1 min read
Asia Economics Update India's financial stability fears prompt another reserve ratio cut Today’s announcement by the Reserve Bank of India (RBI) of another cut in the cash reserve ratio suggests that the shift in focus away from inflation is towards financial stability and not growth. 15th October 2008 · 1 min read
Asia Chart Pack Rates have much further to fall (Oct 08) The dramatic events in global financial markets in recent weeks have increased fears about the impact on the wider economies, while the collapse of commodity prices has swiftly put to rest lingering... 13th October 2008 · 1 min read
Asia Economics Update Korean interest rates to fall to 3% The Bank of Korea’s decision to cut interest rates by 25 basis points (bp) to 5% (together with a similar move by Taiwan and a further 50bp cut by Hong Kong) was not so surprising given yesterday’s... 9th October 2008 · 1 min read
Asia Economics Update Australia leading the way on rate cuts Today’s surprisingly large 100 basis points (bp) rate cut by the Reserve Bank of Australia (RBA) from 7.00% to 6.00% (consensus 50bp), may be the first in a series of aggressive moves from the world’s... 7th October 2008 · 1 min read
Asia Economics Update Credit crisis prompts India to loosen monetary stance Today’s surprise announcement by the Reserve Bank of India (RBI) of a 50 basis point (bp) cut in the cash reserve ratio is the latest indication that the country is not immune to the global financial... 6th October 2008 · 1 min read
Asia Economics Update Korean rates will fall soon despite hawkish statement Today’s decision by the Bank of Korea (BoK) to keep interest rates at 5.25% (after last month’s 25 basis points hike) was accompanied by a relatively hawkish policy statement. But we still expect the... 11th September 2008 · 1 min read
Asia Chart Pack Asian interest rates close to peaking (Sep 08) The recent pullback in oil prices – and commodity prices more generally – has encouraged most Asian central banks (ex. China & Japan) to reorient their policy priorities back towards supporting growth... 4th September 2008 · 1 min read
Asia Economics Update Further Australian rate cuts to be slow in coming Today’s 25bp rate cut to 7.0% confirms the Reserve Bank of Australia’s (RBA’s) shift in focus from inflation towards growth concerns. The RBA had previously been one of the most hawkish central banks... 2nd September 2008 · 1 min read
Asia Economics Update Thai rates reach their peak With today’s rate hike, we think that the Bank of Thailand has probably done enough to keep inflation in check. Rates are likely to be left on hold into 2009, but attention will gradually turn to... 27th August 2008 · 1 min read
