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Stock impact report

Asia's Hawks Get Put on Alert After Indonesia's Shock Rate Hike [BNN Bloomberg (Canada)]

HSBC Holdings, plc. (HSBC) 
US:NYSE Investor Relations: hsbc.com/investor-relations
Company Research Source: BNN Bloomberg
The currencies of Japan, South Korea, Thailand, Taiwan, Malaysia, the Philippines and India are all trading within sight of multi-year lows, raising the odds for local authorities to take firmer action to stem the slide. Won and ringgit swaps, for example, are already pricing in a less dovish stance by the two local central banks. Indonesia's unexpected monetary tightening this week demonstrates the precarious position of central banks as they grapple with the outlook of higher-for-longer US interest rates. Policymakers across Asia must choose between damping economic growth or protecting exchange rates that are in free-fall. “The surprise hike by Indonesia's central bank will certainly let other EM central bankers sit up straight,” said Frederic Neumann, chief Asia economist at HSBC Holdings Plc. “Even as inflation has normalized across much of Asia, the specter of further dollar strength is keeping central bankers in the region on the defensive.” While China has been contendi Show less Read more
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