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Goldman Joins Calls to Unleash More Rate Hikes in Emerging Asia

  • Malaysia surprises with rate increase after signaling patience
  • Bets on tightening in Thailand, Indonesia, India have risen
Shoppers walk through a market in Kuala Lumpur, Malaysia.

Shoppers walk through a market in Kuala Lumpur, Malaysia.

Photographer: Ian Teh/Bloomberg
Updated on

Hawkish expectations in Asia’s emerging markets are piling up as traders become increasingly convinced that central banks in the region can’t ignore the threat of domestic inflation any longer. 

Goldman Sachs Group Inc. is one of the latest banks to now see an “imminent” lift-off in rates in several Asian markets. The region’s shorter-maturity bonds, which are more sensitive to rate expectations, have spiked this quarter amid doubts about the dovish rhetoric from policy makers. Malaysia’s central bank surprised with a rate hike on Wednesday, after signaling patience in April.