Asian Central Banks Unlikely to Follow Fed Rate Hike

ArticleBanking crisisMarch 21, 2018 - 6:38:43 AM

Most Asian central banks will stand pat for now, even with the Federal Reserve poised to raise borrowing costs this week.

While previous tightening cycles in the U.S. prompted many Asian nations to move in lockstep, things are different this time. Subdued inflation and healthy foreign reserves reduce the need to move quickly and the risk of a trade war gives policy makers another reason for pause.

China, Japan and Australia anchor the region’s bias to staying on hold, but there are important exceptions. India remains hawkish and economists also expect South Korea and Indonesia to raise rates this year...

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