Asia Economics Update Australia-China FTA will help rebalance Australia’s economy Australia signed a free trade agreement (FTA) with China yesterday that will give its exporters a surprising amount of access to China’s market. The biggest opportunities lie in the agriculture and... 18th November 2014 · 1 min read
Asia Economics Update Rate hikes in Indonesia unlikely despite subsidy cuts Today’s move by Indonesia’s new president to hike fuel prices is an encouraging first step on the road to reform. Although inflation is now likely to rise sharply, any spike should prove temporary... 17th November 2014 · 1 min read
Asia Economics Update Pakistan rate cut not the start of aggressive easing The State Bank of Pakistan (SBP) cut its policy rate by 50bp to 9.5% over the weekend, having been encouraged by a recent drop in inflation. But with inflation set to rise again over the coming months... 17th November 2014 · 1 min read
Asia Economics Update Bank Indonesia to keep rates on hold well into 2015 Bank Indonesia (BI) left interest rates on hold again today despite the ongoing weakness of the economy. A large current account deficit and an uncertain outlook for inflation mean rates are likely to... 13th November 2014 · 1 min read
Asia Economics Update Korean interest rates to remain on hold until mid-2015 The decision by the Bank of Korea (BoK) to leave interest rates on hold today at 2.0% comes despite the recent weakness of the Japanese yen against the won, which had led to some calls for more rate... 13th November 2014 · 1 min read
Asia Economics Update Malaysia’s policy rate to stay on hold until mid-2015 Against a backdrop of softer domestic growth and weakening exports, the Malaysian central bank (BNM) unsurprisingly kept its policy rate on hold at 3.25% today. As the accompanying statement took on a... 6th November 2014 · 1 min read
Asia Economics Update Thailand's monetary policy to stay accommodative With the economic recovery still in the slow lane, the Bank of Thailand (BoT) unsurprisingly held its policy rate at 2.0% at its meeting today. As inflation is unlikely to emerge as a major policy... 5th November 2014 · 1 min read
Asia Economics Update Australia's first rate hike further off than most expect The Reserve Bank of Australia (RBA) kept its policy rate on hold at 2.5% today and provided no surprises in its policy statement either. Once again it said that “the most prudent course is likely to... 4th November 2014 · 1 min read
Asia Economics Update PMIs weaken in most of Asia The October PMIs for Emerging Asia offered no signs that the region's disappointing manufacturing recovery is gaining any momentum. The most encouraging aspect of today's surveys was that they pointed... 3rd November 2014 · 1 min read
Asia Economics Update Minimal impact from the end of QE3 Asia's financial markets have so far taken the end of QE3 largely in their stride. The performance of the region's currencies and equity markets has been fairly muted over the past month, while... 31st October 2014 · 1 min read
Asia Economics Update Growth in Taiwan to remain solid if unspectacular Taiwan’s economy picked up slightly last quarter, on the back of stronger exports, investment and public spending. Over the next year or so, we expect Taiwan’s economy to continue to record decent... 31st October 2014 · 1 min read
Asia Economics Update New Zealand's next rate hike looking more distant The Reserve Bank of New Zealand (RBNZ) kept its policy rate at 3.5% today for the second meeting in a row. Subdued inflation, slowing growth and the strength of the New Zealand dollar all suggest that... 30th October 2014 · 1 min read
Asia Economics Update Korean recovery to continue GDP growth in Korea picked up in the third quarter, thanks mainly to improving domestic demand. Looking ahead, we think the economy should gather more momentum in the coming quarters helped by a... 24th October 2014 · 1 min read
Asia Economics Update Rates on hold in the Philippines, but further hikes likely The decision to leave interest rates in the Philippines on hold at 4.0% today reflects a recent easing of inflationary pressures. Nevertheless, with credit still growing at an unsustainable pace and... 23rd October 2014 · 1 min read
Asia Economics Update Why fuel subsidy reform matters for India and Indonesia Indian consumer price inflation fell to its slowest pace on record in September. With the latest data also pointing to continued weakness in the industrial sector, we remain of the view that interest... 20th October 2014 · 1 min read
Asia Economics Update Today’s cut should mark the end of the loosening cycle in Korea Today’s 25 basis point interest rate cut by the Bank of Korea (BoK) takes the main policy rate back to the all-time low last seen during the global financial crisis. But with growth set to accelerate... 15th October 2014 · 1 min read
