Asia Economics Update Elections in Korea deal further blow to reform hopes Yesterday’s parliamentary elections in Korea, which saw the governing Saenuri Party suffer a defeat, represent a major blow to the authority of President Park Guen-hye and further reduce the... 14th April 2016 · 1 min read
Asia Economics Update Further policy loosening in Singapore unlikely The Monetary Authority of Singapore (MAS) today moved to flatten the slope of its nominal effective exchange rate policy band, a decision that amounts to a loosening of its policy stance. But with... 14th April 2016 · 1 min read
Asia Economics Update Korean won leads the way Asian currencies continued their recovery in March, helped in part by fading fears of a sudden devaluation in the renminbi. 31st March 2016 · 1 min read
Asia Economics Update Sri Lanka leaves rates on hold, but further tightening likely soon Despite mounting concerns over rapid credit growth, rising inflation and a weakening currency, the central bank in Sri Lanka (CBSL) opted to keep its key policy interest rates unchanged at its meeting... 29th March 2016 · 1 min read
Asia Economics Update Taiwan approaching the limits of conventional monetary policy Taiwan’s central bank (CBC) cut its discount rate by 12.5 basis points to 1.50% today against a backdrop of very weak growth and low inflationary pressures. Further cuts to the discount rate are... 24th March 2016 · 1 min read
Asia Economics Update Fiscal policy to take lead over monetary policy in supporting growth The Bank of Thailand (BoT) unsurprisingly kept its policy rate unchanged at 1.50% today. With the government stepping up efforts to support growth, we expect rates to be left on hold throughout 2016. 23rd March 2016 · 1 min read
Asia Economics Update Central bank in the Philippines in no rush to adjust rates With the economy steadily gaining momentum but inflation very low, today’s decision by the central bank of the Philippines (BSP) to keep its key policy rate on hold at 4.0% came as no surprise... 23rd March 2016 · 1 min read
Asia Economics Update Bank Indonesia cuts again, easing cycle nearing end A rebounding currency, subdued economic growth and inflation, and the Fed’s dovishness yesterday all fed into Bank Indonesia’s decision to cut its main policy rate for the third time in as many months... 17th March 2016 · 1 min read
Asia Economics Update What’s gone wrong in Sri Lanka? Sri Lanka’s request for an IMF loan should ease fears about a potential balance of payments crisis, but the mistakes that put the country in this position will need to be addressed. Most importantly... 16th March 2016 · 1 min read
Asia Economics Update Rate cuts in Korea can’t be ruled out The Bank of Korea (BoK) today left its policy rate unchanged at a record low of 1.50%. The pressure for a rate cut is building against a backdrop of softening economic data, but we are sticking with... 10th March 2016 · 1 min read
Asia Economics Update Malaysia holds rate, but all eyes on BNM governor succession Malaysia’s central bank (BNM) today kept its policy rate on hold at 3.25% at a monetary policy meeting that will be Governor Zeti’s last after 16 years at the helm. We continue to think rates will be... 9th March 2016 · 1 min read
Asia Economics Update High household debt another drag on Malaysia’s growth Malaysia’s high level of household debt is unlikely to trigger financial instability, but it will continue to be another constraint on growth. 7th March 2016 · 1 min read
Asia Economics Update Asian markets mixed, Indonesia top performer After a rocky start to the year, Asian markets have settled down over the last month as investors have pushed back their expectations for the next rate hike in the US and oil prices stabilised. 29th February 2016 · 1 min read
Asia Economics Update Sri Lanka’s tightening cycle just starting The central bank in Sri Lanka (CBSL) has delivered a surprise by hiking both its policy interest rates by 50bp. Against a backdrop of rapid credit growth, building price pressures and currency... 19th February 2016 · 1 min read
Asia Economics Update Bank Indonesia likely to cut one more time Bank Indonesia today cut its main policy rate by 25 basis points to 7.00%. We believe that one more cut is likely in this cycle. Today’s statement hints that, as long as the recent market calm... 18th February 2016 · 1 min read
Asia Economics Update Bank of Korea to maintain wait and see stance The Bank of Korea (BoK) left its policy rate unchanged at a record low of 1.50% today against a backdrop of heightened financial market volatility. While we can’t rule out a rate cut in the coming... 16th February 2016 · 1 min read
