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
Asia Economics Focus Will the BRICs win the inflation battle? We expect inflation of 4% or below in China next year, but mounting core pressures mean that Russia is likely to suffer double-digit inflation for the rest of this decade. But the policy response may... 20th August 2008 · 1 min read
Global Economics Focus Will the BRICs win the inflation battle? We expect inflation of 4% or below in China next year, but mounting core pressures mean that Russia is likely to suffer double-digit inflation for the rest of this decade. But the policy response may... 20th August 2008 · 1 min read
Asia Economics Update South-East Asian interest rates close to a peak The recent fall in the prices of oil and other commodities strengthens our view that the present tightening cycle in South-East Asia will be a short one. We expect regional interest rates to peak in... 19th August 2008 · 1 min read
Asia Economics Update First Korean rate hike in 12 months also likely to be last We suspect that today’s 25bp rate hike from the Bank of Korea (BoK) will be a one-off move similar to the European Central Bank’s warning shot last month, rather than the first in a new tightening... 7th August 2008 · 1 min read
Asia Economics Update Ambitious inflation targets suggest more tightening to come By taking tougher than expected action, today’s rate hikes provide welcome reassurance that the Reserve Bank of India (RBI) is serious about tackling rising prices and will help keep inflation... 29th July 2008 · 1 min read
Asia Economics Update Cautious optimism after Indian coalition wins “trust” vote Today’s narrow confidence vote win, by 275 to 256 votes, gives a much needed boost of political capital to India’s beleaguered Indian National Congress (INC) party. We are cautiously optimistic that... 22nd July 2008 · 1 min read
