Asia Economics Update Korea's central bank bides its time The Bank of Korea (BoK) unexpectedly held its policy rate at 2.75% today. Nonetheless, core inflation has surged and looks set to climb further while GDP growth should pick up too. The upshot is that... 11th February 2011 · 1 min read
Asia Economics Update Vietnam still needs to do much more Vietnam’s central bank today devalued the reference rate for the dong by around 9%. The move was bigger than expected but long overdue. To be a success, today’s adjustment has to be complemented soon... 11th February 2011 · 1 min read
Asia Economics Update Rate hikes in the Philippines only a matter of time The Philippines’ central bank (BSP) kept its policy rate unchanged at 4.0% today, as expected. We are sticking with our long-held view that rates need to move up this year to ensure that inflation... 10th February 2011 · 1 min read
Asia Economics Update India stocks still look good for the long term Indian equities have fallen sharply since mid-November and the pain will probably continue for a few more months yet. Nevertheless, we anticipate that the Reserve Bank’s monetary policy tightening... 10th February 2011 · 1 min read
Asia Economics Update Sri Lanka still likely to tighten policy this year The Central Bank of Sri Lanka (CBSL) kept its policy rates unchanged at today’s meeting, as expected. The upswing will probably stay strong while inflation is likely to accelerate in coming months. We... 8th February 2011 · 1 min read
Asia Economics Update Indonesia's upswing set to stay in good shape Q4 GDP data for Indonesia, published today, were stronger than expected. The upswing will almost certainly remain impressive, with domestic demand leading the way. Government bonds will continue to... 7th February 2011 · 1 min read
Asia Economics Update Bank Indonesia makes the right move Bank Indonesia today hiked its reference rate by 25bp to 6.75%. This is what we expected would happen, but was a surprise to the consensus. More hikes are on the way, and soon. We continue to... 4th February 2011 · 1 min read
Asia Economics Update Asia's industrial sector is gaining some traction, for now Manufacturing PMIs for January, released today and yesterday, improved in India and Taiwan and stayed above the key 50 level which signals expansion in Korea and Singapore. Manufacturing in Asia looks... 1st February 2011 · 1 min read
Asia Economics Update Singapore on course to tighten policy further Q4 employment data for Singapore, published yesterday, were strong. What’s more, the 2011 budget due in mid-February will probably focus on handouts to low-income groups, measures to lift productivity... 1st February 2011 · 1 min read
Asia Economics Update Australia's monetary policy tightening is not over The Reserve Bank of Australia (RBA) held its cash rate at 4.75% today, as was universally expected. Low inflation and the uncertainty created by the floods disaster are likely to keep the RBA on the... 1st February 2011 · 1 min read
Asia Economics Update Thailand political risks should fall this year Monthly indicators for December released at the end of last week and today underline that Thailand’s economy is now regaining momentum. The main threat to the economic outlook is an increase in... 31st January 2011 · 1 min read
Asia Economics Update The Philippines set for another strong year in 2011 Q4 GDP in the Philippines, published today, was up in q/q terms, after dropping in Q3. Household spending and private investment should be strong in coming quarters. An increase in the central bank... 31st January 2011 · 1 min read
Asia Economics Update Taiwan's household spending still a weak spot Taiwan continued to outperform most expectations at the end of 2010 thanks to strong export growth. But the relative weakness of household spending means that the economy is likely to underperform if... 31st January 2011 · 1 min read
Asia Economics Update Pakistan's central bank hopes for the best In a surprise decision over the weekend, the State Bank of Pakistan (SBP) left its policy rate unchanged at 14.0%. The SBP was unequivocal in its criticism of government policies but is prepared to... 31st January 2011 · 1 min read
Asia Economics Update Australia's Reserve Bank still likely to hike by year-end The government in Australia will introduce a temporary levy on household incomes to help pay for the damage caused by recent floods. The floods disaster has not materially changed the economic outlook... 27th January 2011 · 1 min read
Asia Economics Update Bank Negara will probably tighten soon Bank Negara Malaysia (BNM) left the overnight rate unchanged today at 2.75%, as expected. Nevertheless, few will now have any doubts about the durability of the economic upswing while even the BNM... 27th January 2011 · 1 min read
