U.S. rate cut doubts are a headache for Asian central banks
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Asian central banks are concerned about the uncertainty surrounding U.S. rate cuts. Policymakers expected the U.S. Federal Reserve to cut its benchmark interest rate multiple times in 2024. However, some observers now believe that the Fed will keep rates unchanged this year. Asian central banks are worried that preempting the Fed's decision could lead to depreciation pressure and capital outflows. The weak yen has sparked speculation of further rate hikes, while the bond market remains calm. The Bank of Thailand has resisted calls for rate cuts, and Malaysia has maintained its key rate at 3.0% amid a falling ringgit. China has cut its 5-year mortgage rate by a record margin to support the property sector. However, China's deflation problem persists. Asian central banks are navigating these uncertainties and their potential impact on their respective economies.

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https://asia.nikkei.com/Opinion/U.S.-rate-cut-doubts-are-a-headache-for-Asian-central-banks