Nomura economists and analysts wrote in a report that the next round of monetary policy easing in Asia may start soon. Most Asian central banks have been in a wait-and-see mode recently, given that they have already lowered interest rates to neutral levels and the US has announced more favorable tariff rates than in April. However, they stated that disappointing economic growth, weak inflation, and concerns about financial stability may prompt Asian central banks to loosen monetary policy. In our view, there is a general expectation that the Fed will start cutting rates from September, providing another trigger for Asian central banks to ease policy. Nomura Securities expects further rate cuts in India, South Korea, Thailand, and Indonesia.
