Economics
Asian Central Banks Unlikely to Follow Fed Rate Hike
- Subdued inflation and higher foreign exchange reserves help
- India and Indonesia are exceptions with current account gaps
BofA's Meyer Says Fed Will Hold at Three Hikes in 2018
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Most Asian central banks will stand pat for now, even with the Federal Reserve poised to raise borrowing costs this week.
While previous tightening cycles in the U.S. prompted many Asian nations to move in lockstep, things are different this time. Subdued inflation and healthy foreign reserves reduce the need to move quickly and the risk of a trade war gives policy makers another reason for pause.