GOP Tax Plan to Add Tightening Pressure in Asia, Goldman Says

Most regional central banks will hike in 2018, note says
Corporate moves, repatriations to have low impact on Asia

U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax forms for the 2016 tax year are arranged for a photograph in Tiskilwa, Illinois, U.S., on Monday, Dec. 18, 2017. This week marks the last leg of Republicans' push to revamp the U.S. tax code, with both the House and Senate planning to vote by Wednesday on final legislation before sending it to President Donald Trump.Photographer: Daniel Acker/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Michelle Jamrisko

December 19, 2017 at 2:55 AM UTC

This article is for subscribers only.

A mammoth tax package coming in the U.S. will add pressure on Asian central banks to tighten while aiding the region’s exports, according to Goldman Sachs Group Inc.

The tax bill will probably be approved and should support Goldman’s outlook for Asia in the coming year for sustained solid growth, inflation coming off from low levels and interest-rate increases by most regional central banks, according to a research note released Tuesday by Andrew Tilton, chief Asia-Pacific economist at Goldman Sachs in Hong Kong.