Salient to Investors:
Reports from three of Asia’s four largest economies signal the jump in commodity prices has not yet constrained the consideration of further monetary stimulus.
Satoshi Osanai at Daiwa Institute of Research said inflation is not yet a major issue for Asian central bankers – Asia and emerging nations have more room to cut rates or ease.
Shen Jianguang at Mizuho Securities Asia said slowing inflation will trigger one more rate reduction in China and at least two more cuts in Chinese banks’ reserve requirements this year, including one this month.
Sun Yoo at Woori Investment & Securities said the market expects the European fiscal crisis to last and that a slowdown in the Korean economy needs policy support.
David Sumual at PT Bank Central Asia said cutting rates can trigger asset bubbles, and the current Indonesian rate is adequate to support its economy amid global turmoil that won’t be resolved in the short-term.