Most countries in Emerging Asia have now recorded cases of Omicron, and the experience from elsewhere in the world suggests that it is only a matter of time before there is widespread community transmission of the new variant. Many places have already introduced new border controls and it seems likely that restrictions on domestic activity will be tightened over the coming weeks. We will be reviewing our GDP growth forecasts ahead of the publication of our Q1 2022 Outlook next month. In terms of monetary policy, the downside risks to growth posed by Omicron reinforce our view that most central banks in Asia will keep interest rates low next year.
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