Research Briefing | Jun 8, 2021

APAC | Neutral rates will vary but generally be modest

The cover of our research briefing titled neutral rates will vary but generally be modest

Inflation is on the rise in Asia following hefty commodity price increases, and it may in some economies even increase above central bank targets. The question is, how will APAC central banks react to it?

Download this report to find out:

  • Are rising inflation, prospects of (eventually) higher interest rates in developed economies, and the possibility of capital outflows putting pressure on interest rates in Asia?
  • To what extent do secular stagnation-type factors contain neutral rates in Asia?
  • When will central banks in APAC lift rates?

Back to Resource Hub

Related Services

ECB

Post

Eurozone: ECB minutes indicate that July rate hike is a near-certainty

The minutes from the April ECB meeting confirm the hawkish tilt initiated a few months ago continues to gain momentum. With a majority of the council increasingly concerned about the inflation outlook, this makes an interest rate hike already in July almost certain. This should not come as a surprise, however, as recent developments render hawks' case arguably easier to make.

Find Out More
Japanese yen

Post

For how long will Japan’s households support bonds and the yen?

Households' financial surpluses sharply increased in 2020 and remained high in 2021 due to the Covid pandemic. Most of the surplus continued to go to cash and deposits, but there was a notable increase in funds going to investment trusts (with a large portion invested in foreign equities) in 2021. Amid rising international yield differentials and a weakening yen, there is market chatter about whether this is the beginning of a structural shift from households' risk-averse investment style?

Find Out More