In the media | 24 Oct 2022
Priyanka Kishore: Time for Asian central banks to pay heed to growth risks

“A significantly more hawkish Fed arguably gives Asian central banks more reason to stay on the course of rapid policy tightening. But a closer look at the banks’ actions and policy statements reveals that the motivation for frontloaded rate moves remains primarily domestic. While the central banks acknowledge an increasingly challenging external environment, keeping inflationary expectations anchored is still their main concern.” Priyanka Kishore, Oxford Economics’ Head of India and Southeast Asia Macro Services, wrote in her op-ed to Nikkei.
“This is something that the region’s central banks should not lose sight of. With a recession all but confirmed in the U.S. and Europe, and COVID lockdowns leading to further gross domestic product downgrades for China, the outlook for Asia’s exports and growth is worsening by the day. “”Looking into 2023, the appropriate policy direction will be an extended rate pause to assess the slowed impact of monetary policy transmission.” She concluded.
Check the full article below:
To download our latest report on Asia central banks, please check APAC central banks look to anchor expectations rather than follow Fed – Oxford Economics.
For media enquiries on Asia, please contact:
Sally Li
sli@oxfordeconomics.com
Tags:
You may be interested in

Post
Japan’s supply-driven food inflation to persist longer than expected
We have revised our CPI forecast upwards for this year and next, due to more persistent supply side-driven food inflation, led by soaring prices of rice. Despite the significant revision to the short-term inflation path, we don't expect the Bank of Japan (BoJ) to react with a rate hike.
Find Out More
Post
Opportunities in Singapore could mitigate hit from US trade barriers
The slew of tariff proposals coming out of the US has added much uncertainty to the highly export-reliant Singapore economy. Given its status as a major shipping hub, potential gains from trade rerouting will probably offset some of the negative impacts of increased tariffs. The upshot is that although Singapore's prospects are dimmed, they remain relatively promising.
Find Out More
Post
Japan’s older households to support spending under higher rates
The resilience of consumption is essential to support sustained wage-driven inflation and the Bank of Japan's rate hikes. We see little risk of spending faltering due to the projected gradual rate hikes to 1% because the ageing of society has made households' balance sheets less vulnerable to rate increases.
Find Out More