Asia Economics Update Dong devaluation not part of Asian currency war Although today’s decision by the State Bank of Vietnam (SBV) to devalue the dong by a further 1% against the US dollar and widen the trading band was in part linked to China’s devaluation of the... 19th August 2015 · 1 min read
Asia Economics Update Bombings add to Thailand’s economic and political concerns The bombings in Thailand’s capital present a new downside risk to the country’s economic outlook. Not only are the attacks a blow to the important tourism sector, they also add to concerns about... 19th August 2015 · 1 min read
Asia Economics Focus Will ASEAN take China’s place as the workshop of the world? We see little prospect of ASEAN transforming itself into the kind of single market and production base that would allow it to challenge China as the manufacturing workshop of the world. Nevertheless... 19th August 2015 · 1 min read
Emerging Markets Economics Update After the falls: where next for EM currencies? The most recent declines in emerging market currencies have been driven by renewed falls in global commodity prices, China’s ‘devaluation’ of the renminbi, and worries about the prospect of monetary... 18th August 2015 · 1 min read
Asia Economics Update Sri Lanka’s elections unlikely to end political uncertainty Financial markets are likely to welcome the re-election of Ranil Wickremasinghe as Sri Lanka’s prime minister. However, with the new prime minister likely to have to govern as part of a coalition... 18th August 2015 · 1 min read
Global Markets Update Why this is not the Asian Financial Crisis MK2 The recent depreciation of the Indonesian rupiah and Malaysian ringgit against the dollar has left both currencies at levels not seen since 1998, but suggestions that this signals a re-run of the... 18th August 2015 · 1 min read
India Economics Update Has bank lending turned a corner? The sharp slowdown in bank lending to the private sector over the past four years appears to have bottomed out, as cuts to policy rates gradually feed through to commercial banks’ lending rates. But... 18th August 2015 · 1 min read
Asia Data Response Thailand GDP (Q2) Thailand's economy expanded by 2.8% y/y in the second quarter, down from 3.0% the quarter before, reflecting weaker private consumption and investment growth. Against a backdrop of high household debt... 17th August 2015 · 1 min read
Asia Economics Weekly Another look at Asia’s exposure to China The last week has been dominated by concerns that the People’s Bank of China was embarking on a competitive devaluation of the renminbi and fears that the Chinese economy might be heading for a “hard... 17th August 2015 · 1 min read
India Data Response Wholesale Prices (Jul.) Wholesale price inflation dropped sharply in July to its lowest rate since the series began. This substantially increases the chance of the Reserve Bank of India cutting interest rates in another... 14th August 2015 · 1 min read
Asia Economics Update Interest rates in the Philippines to remain on hold for a while yet The central bank in the Philippines (BSP) today left its policy rate on hold at 4.0%. With growth set ton recover in the coming quarters, but inflation likely to remain low, we think the central bank... 13th August 2015 · 1 min read
Asia Data Response Malaysia GDP (Q2) Considering the headwinds that were facing Malaysia’s economy in the second quarter – such as the introduction of the Goods & Services tax (GST) in April, low commodity prices and the generally weak... 13th August 2015 · 1 min read
India Economics Update Reform agenda hits another roadblock The ruling BJP's efforts to push through important economic reforms in the monsoon session of parliament, which finishes today, have been largely unsuccessful. Looking ahead, with attention soon... 13th August 2015 · 1 min read
Asia Economics Update Korean rates to stay on hold for a while yet The Bank of Korea (BoK) kept its policy rate unchanged at a record low of 1.50% today, despite talk of a fresh round of "currency wars" across Asia following the People's Bank of China's decision to... 13th August 2015 · 1 min read
Asia Economics Update Talk of a fresh round of Asian "currency wars" is overblown The second downward revision to the People‘s Bank of China‘s daily reference rate for the renminbi has today intensified talk that a fresh round of “currency wars“ is about to sweep across Asia. We... 12th August 2015 · 1 min read
India Economics Update No need to panic over rupee sell-off The rupee has depreciated to its weakest level since the 2013 "taper tantrum" this morning, but we don't think that this will cause panic among policymakers. Since the start of the year, the rupee has... 12th August 2015 · 1 min read
