Easing cycle underway
By
👤AXA
Also Interesting
An Asian central bank policy outlook
Historically there has been a general co-movement between Asian central banks and the US Federal Reserve (Fed), albeit that there is heterogeneity between banks’ reaction functions.
Past episodes suggest the magnitude and duration of the easing cycles for Asian central banks are somewhat different to those of the Fed.
The Philippines and Taiwan tend to be the most aggressive in terms of easing policy, while Thailand seemed to be the least reactive. We consider different reactions to be dependent on associated currency moves.
Apart from the Fed’s trigger, we expect rising growth concerns, declining export growth, low inflationary pressure and stable domestic currencies to play a part in the region’s dovish stance.
Going forward, we expect Asian central banks to continue to cut rates with a few exceptions – Bank Negara Malaysia and
By
👤AXA
