Asia Economics Update India tries to get ahead of the curve with more rate hikes The Reserve Bank of India (RBI) today announced a 50bp hike in the repurchase rate, to 8.5%, and plans for two 25bp hikes in the cash reserve ratio next month, taking it to 8.75%. The move is an... 24th June 2008 · 1 min read
Asia Economics Update Tankan to remain well above recession territory The Bank of Japan’s quarterly “Tankan” survey for June, due next Tuesday (1st July), will almost certainly report that business conditions have deteriorated. However, there has been some better news... 23rd June 2008 · 1 min read
Asia Economics Update Easing inflation concerns behind Chinese fuel price hike China’s decision to hike fuel prices confirms that domestic concerns over inflation are easing. What’s more, the move could help to cap global oil prices. 19th June 2008 · 1 min read
Asia Economics Update BoJ more sensitive than most to jump in inflation expectations The Bank of Japan predictably left rates on hold today. But with inflation expectations soaring, we believe that rates will be raised again sooner than generally anticipated and perhaps even earlier... 13th June 2008 · 1 min read
Asia Economics Update Chinese equities back at intervention levels Chinese equity prices are again scraping the levels at which many investors assume the government will intervene to provide support. In the long run though, the government’s unwillingness to step back... 10th June 2008 · 1 min read
Asia Economics Update China’s current account eases, but hot money fears remain Today’s release of China’s balance of payments figures for 2007 provides no firm answers to the question of whether hot capital inflows are flooding the country. Growth of the trade surplus has slowed... 5th June 2008 · 1 min read
Asia Economics Update Corporate Japan in good shape to weather global slowdown 4th June 2008 · 1 min read
Asia Economics Update Indonesia: more tightening in the pipeline Indonesia’s latest round of fuel price hikes was designed to safeguard fiscal sustainability and is therefore positive in the long run. However, a worsening near-term inflation outlook is likely to... 28th May 2008 · 1 min read
Asia Economics Update Is India turning its back on liberalisation? A surge in populist policies and government interventions has sparked concerns that Asia’s third largest economy is turning its back on liberalisation. The moves follow on from the failure of the... 21st May 2008 · 1 min read
Asia Economics Update Is a step revaluation of the renminbi a possibility? A large one-off revaluation of the renminbi remains highly unlikely. It would lead to job losses and give a jolt to China’s fragile financial sector. But, with officials increasingly concerned about... 21st May 2008 · 1 min read
Asia Economics Update Is China now targeting a trade-weighted exchange rate? The renminbi’s long pause at seven to the dollar is evidence that the Chinese currency is as closely tied to the US dollar as ever. A gradual loosening of that link is likely to be the next major... 19th May 2008 · 1 min read
Asia Economics Update Earthquake won’t prompt looser monetary policy in China Suggestions that China’s earthquake will affect economic growth, or prompt a loosening of monetary policy, are wide of the mark. In any case, with the People’s Bank more wary than ever of the dangers... 14th May 2008 · 1 min read
Asia Economics Update Korean rates still headed for 4.50% Today’s decision by the Bank of Korea (BoK) to hold the official 7-day repo rate at 5.00% reflected concerns about oil price-induced inflation and the still relatively high liquidity levels in the... 8th May 2008 · 1 min read
Asia Economics Update Bank of Japan drops tightening bias The Bank of Japan left rates on hold today, as universally expected, but the tone of its twice-yearly “Outlook for Economic Activity and Prices” is more dovish than we at least had anticipated. In... 30th April 2008 · 1 min read
Asia Economics Update Indian rates on hold but industry will still feel the pinch The Reserve Bank of India (RBI) defied market expectations by keeping interest rates on hold today and instead announcing another increase in the cash reserve ratio, to 8.25% (with effect from 24th... 29th April 2008 · 1 min read
