Three central banks across Asia Pacific delivered surprise interest-rate decisions on Wednesday as policy makers take aggressive action to counter a worsening global economy.
New Zealand and India led with bigger-than-expected interest rate cuts, while Thailand’s 25-point reduction was a surprise to all but two in a Bloomberg survey of economists.
Policy makers
are taking bolder steps to bolster their economies as escalating U.S.-China trade tensions threaten to worsen global growth and currency battles roil financial markets. The Federal Reserve’s rate cut last week paved the way for more easing in the region, and markets are pricing in the chance of another cut in September after President Donald Trump threatened additional tariffs against China.
“Demand is easing globally, and inflation pressures look set to remain highly restrained,” said Chang Wei Liang, a macro strategist of DBS Group Holdings Ltd. in Singapore. “The dovish bias could remain somewhat entrenched, until there are signs of green shoots in Europe/China, and some meaningful reduction in trade anxiety.”
- Bloomberg
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