Central Banks
Morgan Stanley Sees Fed Cut Delay Pushing Back Easing in Asia
- Morgan Stanley economists see rates staying higher for longer
- China seen cutting in 3Q, Korea in 4Q, India holding all year
The odds of rate cuts are waning globally as data points to ongoing inflation pressures in the US.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
Most central banks across Asia are likely to begin cutting interest rates later in the year — if at all, according to economists at Morgan Stanley, as the Federal Reserve delays its own policy easing.
Central bank policymakers in China, South Korea, Indonesia, the Philippines and Taiwan are set to postpone rate cuts, while India and Malaysia hold rates for the rest of the year, economists led by Chetan Ahya wrote in a note Monday that revised the monetary policy outlook.