Central banks in the region are still fighting the inflation battle and will likely progress with a combination of interest rate hikes and currency strength. There is a widespread view that inflation in China is peaking but we think it’s far too early for policymakers to claim victory. Markets will be sensitised to any weakness in activity data following months of monetary policy tightening.
Included in this report:
– GDP, CPI and benchmark interest rate forecasts p. 2.
– FX outlook overview p. 3.
– Individual Asian FX summaries and forecasts pp. 4-8.
– Summary of selected recent EM Asia publications p. 9.
Click here to read the full report:
http://www.easyforexnews.net/uploads/2011/05/EM-Country-Briefing_Monthly_May-2011.pdf
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