Central banks in Asia could soon diverge from the Fed, Nomura says
Publishing timestamp: 2023-07-10 20:44:30
Summary
The article suggests that central banks in Asia may cut rates before the Federal Reserve, indicating a potential decoupling from the global tightening cycle led by the Fed. Nomura economists believe that fundamental divergences between Asian and U.S. economies, such as disinflation and weak demand, could lead to this divergence. They predict that the Bank of Korea and the Reserve Bank of India could be among the first to cut rates, with China already implementing policy rate cuts. The article also mentions that India has previously decoupled from the Fed's cycle.
Sentiment: MIXED
Keywords: indonesia, world economy, business news, forex markets, china, nomura holdings inc, prices, us dollar/korean won fx spot rate, united states, central banking, india, asia economy, world markets,
Source: https://www.cnbc.com/2023/07/11/asias-central-banks-could-cut-rates-before-the-fed-nomura.html