Asia Economics Update A tough year ahead for Vietnam after Q1 growth slows sharply GDP in Vietnam grew by just 4.0% y/y in the first quarter of 2012 – the weakest rate of expansion since the first quarter of 2009. The economy faces a difficult year in 2012 due to a combination of... 26th March 2012 · 1 min read
Asia Economics Update New Zealand grinding out a moderate recovery Today’s GDP data show that New Zealand’s economy grew at a sluggish pace in Q4. Growth is likely to be weak in the near term as the temporary boost from the Rugby World Cup unwinds, but post... 22nd March 2012 · 1 min read
Asia Economics Update Bank of Thailand pauses to assess recovery The Bank of Thailand (BoT) kept its policy rate at 3.0% today, as expected. The speed of the local recovery from last year’s floods and global developments will determine monetary policy decisions in... 21st March 2012 · 1 min read
Asia Economics Update India takes modest steps to correct budget deficit The Indian budget for 2012/13, presented to parliament today, incorporates some significant tax hikes and should be viewed positively by the markets and the central bank. The main concern, though, is... 16th March 2012 · 1 min read
Asia Economics Update Reserve Bank of India leaves repo rate unchanged The Reserve Bank of India (RBI) left its repo rate unchanged at today’s meeting and took a hawkish tone in its policy statement. Given that measures of activity have picked up recently and inflation... 15th March 2012 · 1 min read
Asia Economics Update New 2012 forecasts for Sri Lanka The central bank of Sri Lanka (CBSL) left its repurchase rate on hold at 7.5% today. With the central bank still assessing the impact of a number of major policy changes introduced last month, the... 14th March 2012 · 1 min read
Asia Economics Update How have last year's natural disasters affected Asia? Asia was hit by several natural disasters in 2011, most notably the tsunami that struck Japan in mid- March. These events were foremost human tragedies, but they also had an economic impact. While... 12th March 2012 · 1 min read
Asia Economics Update Global upturn stays Malaysian central bank’s hand Bank Negara Malaysia (BNM) held its policy rate at 3% today, as was expected. Inflation has eased in the last four months, but a general improvement in economic data both at home and abroad has... 9th March 2012 · 1 min read
Asia Economics Update Korea’s central bank playing a waiting game The Bank of Korea (BoK) kept its policy rate at 3.25% today, as expected. The central bank is weighing downside risks to growth against the threat of higher oil prices pushing up inflation. Our view... 8th March 2012 · 1 min read
Asia Economics Update Cuts to fuel subsidies mean no more rate cuts in Indonesia Having cut interest rates by a cumulative 100bp over the past six months, Bank Indonesia (BI) left rates on hold today, as expected. With upcoming cuts to fuel price subsidies likely to push inflation... 8th March 2012 · 1 min read
Asia Economics Update Australia is well-placed to continue to outperform Today’s GDP data show that Australia’s economy grew by less than expected in Q4. Nonetheless, Australia outpaced the US, euro-zone and UK over 2011 as a whole. While we expect the global economy to... 7th March 2012 · 1 min read
Asia Economics Update Rates cut in Vietnam to help struggling banking sector The State Bank of Vietnam (SBV) today announced that it would be reducing its key policy rate “over the next few days”. The cut comes after sharp falls in inflation over the past six months and is... 6th March 2012 · 1 min read
Asia Economics Update February PMIs suggest industrial slowdown has bottomed out February PMIs for Asia were positive, boosting hopes that the region’s industrial sector is now on the road to recovery. However, with global growth likely to disappoint this year, any rebound in... 2nd March 2012 · 1 min read
Asia Economics Update Weak growth prompts further rate cut in the Philippines The Philippines central bank (BSP) cut its policy rate by a further 25bp to 4.0% today, taking the overnight rate back to the trough of the previous cycle. Lower interest rates are needed to support... 1st March 2012 · 1 min read
Asia Economics Update India’s growth rate slows, recovery likely to be gradual Data published today reveal a further drop in India’s GDP growth in the last quarter of 2011. Moreover investment has stalled, setting back hopes that trend growth will rise towards Chinese levels. 29th February 2012 · 1 min read
Asia Economics Update Capital inflows are a threat to Asia The return of global risk appetite has helped to push up asset prices across Asia. If we are correct that the crisis in the euro-zone will worsen again later this year, global risk appetite is likely... 28th February 2012 · 1 min read
