Asia Economics Update Bank of Thailand needs to accelerate pace of tightening The Bank of Thailand hiked interest rates today by a further 25bp (to 1.0%) and appears committed to raising interest rates gradually over the coming months. But with inflation elevated and the... 28th September 2022 · 3 mins read
Asia Economics Update Stronger dollar to keep policymakers in tightening mode A strong US dollar is a threat to countries with lots of foreign currency debt and/or inflation problems, and is putting pressure on central banks across the region to raise interest rates more... 27th September 2022 · 3 mins read
Asia Economics Update Taiwan: gradual tightening cycle ahead Taiwan’s central bank today raised its main policy rate by 12.5bp (to 1.625%), and with inflation easing and growth set to struggle, further tightening is likely to be gradual. 22nd September 2022 · 3 mins read
Asia Economics Update New policy rate forecasts for Indonesia Bank Indonesia (BI) today raised interest rates by a further 50bp (to 4.25%) and signalled that more tightening was likely as it aims to support the currency and clamp down on rising inflation. We are... 22nd September 2022 · 3 mins read
Asia Economics Update Philippines: further hikes in the near term The central bank of the Philippines (BSP) today raised its main policy rate by another 50bp (to 4.25%), and signalled that more hikes were likely in the near term. While further tightening is likely... 22nd September 2022 · 3 mins read
Asia Economics Update Bank Negara Malaysia will continue gradual tightening Malaysia’s central bank (BNM) today raised its main policy rate by 25bp (to 2.5%), and signalled that further hikes were likely over the coming months. However, with inflation set to fall back later... 8th September 2022 · 3 mins read
Asia Economics Update Sri Lanka: difficult times lie ahead despite IMF deal Today’s announcement of a deal between the IMF and Sri Lanka brings some long overdue good news and provides a potential route out of the crisis. But the economy is not out of the woods yet. The money... 1st September 2022 · 4 mins read
Asia Economics Update Sri Lanka: difficult times lie ahead despite IMF deal Today’s announcement of a deal between the IMF and Sri Lanka brings some long overdue good news and provides a potential route out of the crisis. But the economy is not out of the woods yet. The money... 1st September 2022 · 4 mins read
Asia Economics Update Korea: tightening cycle to finish by end-year The Bank of Korea today raised its main policy rate by 25bp (to 2.5%) and signaled further hikes in the months ahead. However, with the central bank becoming more concerned about economic growth and... 25th August 2022 · 3 mins read
Asia Economics Update Bank Indonesia’s first rate hike won’t be the last Bank Indonesia (BI) hiked interest rates by 25bp to 3.75% today, and the hawkish commentary from the press conference increases the risk that the Bank will tighten policy further this year. 23rd August 2022 · 3 mins read
Asia Economics Update Philippines: tightening cycle still has some legs The central bank in the Philippines (BSP) today raised its policy rate by a further 50bps to 3.75%, and gave a strong indication that more rate hikes are likely over the coming months. That said, with... 18th August 2022 · 3 mins read
Asia Economics Update Thailand: gradual tightening cycle ahead The Bank of Thailand hiked interest rates today by 25bp (to 0.75%), but reiterated that the tightening cycle will be gradual. We are sticking with our view that the policy rate will peak at 1.5% next... 10th August 2022 · 3 mins read
Australia & New Zealand Economics Update The implications of an escalating Taiwan crisis The extent to which neighbouring countries would be affected by an escalation of tensions between China and Taiwan would depend both on which sides they take and on the nature of restrictions imposed... 10th August 2022 · 4 mins read
Global Economics How much does Taiwan matter? Taiwan matters far more to the world economy than its 1% share of global GDP would A further escalation in cross-strait tensions that cut Taiwan’s export off from the rest of the world would lead to... 8th August 2022 · 3 mins read
China Economics Update China doesn’t appear to want an economic fight The trade sanctions introduced by China on Taiwan in retaliation for the visit of Nancy Pelosi are small in scope rather than serious efforts to force Taipei to shift course. China is constrained in... 3rd August 2022 · 3 mins read
Asia Economics Update Korea: inflation peaks, tightening cycle nearing end Consumer price inflation in Korea increased to a new 24-year high last month, but we think it has now peaked. With headwinds to the economy mounting, we believe that the central bank’s tightening... 2nd August 2022 · 2 mins read
