Asia Economics Update Rupee decline highlights India’s fundamental weaknesses Talk of “policy tapering” by the Federal Reserve has been the catalyst for a broad-based sell-off in emerging market currencies. Within Asia, the worst performer has been the rupee. Its decline... 12th June 2013 · 1 min read
Asia Economics Update Further hikes in Indonesia's Fasbi rate likely before year-end Bank Indonesia’s decision today to hike the rate it pays lenders on overnight deposits (also known as the Fasbi rate) reflects concerns about the weakness of the rupiah and falls in the level of... 12th June 2013 · 1 min read
Asia Economics Update Australia's growth to be dragged lower by mining slowdown Australia’s GDP growth remained slightly below trend in Q1. We expect growth to slow over the coming quarters as monetary loosening is unlikely to fully offset cooling mining investment. 5th June 2013 · 1 min read
Asia Economics Update May PMIs suggest manufacturing recovery continues to falter The May PMIs for emerging Asia suggest the region’s manufacturing recovery has lost momentum. Most central banks have loosened monetary policy in recent months, but they will not be able to fully... 3rd June 2013 · 1 min read
Asia Economics Update India's recovery is underway, but it will be gradual Marginally stronger GDP growth signals a bottoming out of India's growth slump. But domestic demand remains weak. Against this background, and following its three rate cuts so far this year, we think... 31st May 2013 · 1 min read
Asia Economics Update Strong GDP growth in the Philippines makes rate cuts unlikely GDP growth in the Philippines accelerated in Q1 on the back of strong domestic demand. Against this background, we think the central bank will leave interest rates on hold for the rest of 2013. 30th May 2013 · 1 min read
Asia Economics Update Thailand's government will push for more rate cuts The Bank of Thailand cut its policy rate for the first time since October at its meeting today, under heavy pressure from the government. Another rate cut is likely in the coming months. 29th May 2013 · 1 min read
Asia Economics Update Singapore avoids Q1 contraction, but strong pick-up unlikely Today’s revised GDP data showed that Singapore's economy expanded in Q1, despite an advanced estimate released in mid-April pointing toward contraction. Nevertheless, weak export growth continues to... 23rd May 2013 · 1 min read
Asia Economics Update Thailand's economy should rebound from weak Q1 Thailand’s economy struggled last quarter, but a modest rebound is likely over the coming quarters. Against this backdrop, we think the central bank will continue to resist pressure to cut rates. 20th May 2013 · 1 min read
Asia Economics Update Malaysia’s economy to settle at a slower growth rate Today’s GDP data show that Malaysia’s economy slowed more than expected in Q1. Subdued global demand is likely to prevent a strong recovery over the coming quarters. 15th May 2013 · 1 min read
Asia Economics Update Australia’s public finances are still in good shape Australia’s government expects to make little headway in reducing its budget deficit in 2013/14. The government had previously been aiming to balance the budget in the current fiscal year, but... 15th May 2013 · 1 min read
Asia Economics Update Lower Indian inflation unlikely to result in imminent rate cut The continuing slide in India’s wholesale price inflation will come as a relief to policymakers, but expectations of another near-term rate cut are likely to be disappointed. The RBI will want to see... 14th May 2013 · 1 min read
Asia Economics Update What does S&P’s upgrade mean for the Philippines? S&P today upgraded the Philippines to investment grade status, becoming the second major ratings agency to do so in just over a month. However, this is unlikely to have a major impact on government... 10th May 2013 · 1 min read
Asia Economics Update Further rate cuts in Korea likely by year-end The Bank of Korea unexpectedly cut interest rates today amid fears over the strength of the global economy and concerns about the weakness of the Japanese yen against the won. Low inflation means... 9th May 2013 · 1 min read
Asia Economics Update Australia likely to cut its policy rate again The Reserve Bank of Australia cut its cash rate by 25bp to 2.75% at its policy meeting today. We expect it to cut again before the end of Q3 to compensate for a cooling mining boom. 7th May 2013 · 1 min read
Asia Economics Update Growth in Indonesia to remain resilient Indonesia recorded another quarter of solid growth in Q1. Weak exports and lower commodity prices will act as a drag on the economy in 2013-14. However, as a domestically-driven economy, Indonesia is... 6th May 2013 · 1 min read
