Asia Economics Update Bank of Korea will remain hawkish, in the short term The decision by the Bank of Korea (BoK) to hike its policy rate by 25bps, to 1.75%, is likely to be followed by more hikes to tackle elevated inflation. But the Bank is set to turn more dovish further... 26th May 2022 · 3 mins read
Asia Economics Update Dovish Bank Indonesia in no hurry to raise rates Bank Indonesia left interest rates unchanged today and the dovish tone from the press conference suggests the central bank is in no rush to tighten policy. We are maintaining our view the central bank... 24th May 2022 · 3 mins read
Asia Economics Update Pakistan: Further tightening needed, as IMF talks begin High inflation and the fall in the currency were the two key factors behind the State Bank of Pakistan’s (SBP) decision to raise interest rates by a further 150bp today. More tightening looks... 23rd May 2022 · 3 mins read
Asia Economics Update Philippines: central bank will tighten gradually The central bank in the Philippines (BSP) started raising interest rates today, but with inflation set to slow later in the year and the economic recovery likely to weaken, the tightening cycle is set... 19th May 2022 · 3 mins read
Asia Economics Update Asia to remain inflation outlier Despite surging global food and fuel prices, inflation across most of Emerging Asia looks set to remain relatively low. This is the key reason why tightening cycles in the region will be much more... 17th May 2022 · 3 mins read
Asia Economics Update Bank Negara Malaysia will go slow following early hike Bank Negara Malaysia (BNM) raised its main policy rate earlier than many had expected today, but given low inflation and a continued need to support the recovery, we still think that the tightening... 11th May 2022 · 3 mins read
Asia Economics Update Sri Lanka: five questions and answers on the crisis The resignation yesterday of the prime minister, the postponement of talks with the IMF, surging inflation and the collapse of the currency are just some of the many problems facing Sri Lanka. In this... 10th May 2022 · 3 mins read
Asia Economics Update Philippines: What to expect from Bongbong Marcos Ferdinand “Bongbong” Marcos Jr. is eager to resume the “Build Build Build” infrastructure programme of his predecessor and pursue closer ties with China. Extra spending on infrastructure would be... 9th May 2022 · 4 mins read
Asia Economics Update Bank Indonesia to tighten gradually Bank Indonesia left its main policy rate unchanged at 3.5% at its meeting today, and the relatively benign outlook for inflation means the tightening cycle is likely to be very gradual. 19th April 2022 · 3 mins read
Asia Economics Update BoK resumes tightening cycle, more hikes to come. Today’s decision by the Bank of Korea (BoK) to hike its policy rate by 25bp to 1.50% is unlikely to mark the end of its tightening cycle given the strength of inflationary pressures. We expect at... 14th April 2022 · 3 mins read
Asia Economics Update MAS tightening and strong economy will support SGD The Monetary Authority of Singapore (MAS) tightened monetary policy again at its meeting today. With growth set to remain strong and core inflation likely to stay elevated, we expect the MAS to... 14th April 2022 · 3 mins read
Asia Economics Update Five questions (and answers) on Pakistan’s crisis We held a Drop-In on the political and economic problems facing Pakistan earlier today (see an on-demand recording here). This Update answers some of the most common questions that we received. 13th April 2022 · 5 mins read
Asia Economics Update Sri Lanka suspends debt payments, pushes for IMF deal Sri Lanka’s decision today to suspend payments to bond holders is designed to pave the way for a deal with the IMF and an orderly rescheduling of its debts. The diverse array of creditors to Sri Lanka... 12th April 2022 · 3 mins read
Asia Economics Update Pakistan: major challenges await new PM The main challenge facing Shehbaz Sharif, who today replaced Imran Khan as prime minister of Pakistan, is stabilising the economy. The key to achieving this is a deal with the IMF. The price for any... 11th April 2022 · 3 mins read
Asia Economics Update China COVID outbreak a large risk for the rest of Asia So far, the spill overs from the COVID outbreak in China to the rest of Asia look to have been relatively minor. But the possibility of major disruption to supply chains remains a large and growing... 6th April 2022 · 3 mins read
Asia Economics Update Flaring political risks a major threat in South Asia A constitutional crisis in Pakistan threatens to scupper its deal with the IMF, which would throw its already-precarious external situation into very dangerous territory. Meanwhile, political meltdown... 4th April 2022 · 3 mins read
