Essential Asia: Interest in Interest

With U.S. interest rates on the rise, the focus for Asia is likely to shift to the relative ability to […]

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With U.S. interest rates on the rise, the focus for Asia is likely to shift to the relative ability to cope.

Key highlights:

  • With the U.S. Federal Reserve embarking on a path to rate normalization, the focus in Asia is likely to shift to which economies are best placed to cope.
  • Asia is likely to see slowing but decent 6% growth; its healthy current account balances and strong FX reserves positions though should enable the impact of outflows to be contained.
  • The relative growth and inflation outlooks put India ahead of the pack on both fronts, in addition to the INR’s very healthy positive carry over the USD.
  • We updated our 2016 Asian FX forecasts and also added a focus piece on Taiwan elections.

For full analysis, download report: Essential Asia: Interest in Interest (PDF, 527 KB)