Asia-Pacific Central Banks Have Little Space to Keep Cutting -- Market Talk

Dow Jones11-25

0710 GMT - Central banks in Asia-Pacific likely have limited room to ease as rates return to more neutral territory and currencies remain under pressure, S&P Global economists say. Regional central banks have delivered an average of 65 bps of cuts so far this year versus 40 bps last year, bringing policy rates close to S&P's estimates of neutral levels--neither stimulating nor restricting the economy. APAC rates being relatively lower than in the U.S. makes it harder to keep capital in the region, and FX weakness will likely reduce several central banks' willingness to ease. There is also no pressure coming from the inflationary front, and S&P expects consumer inflation to remain mostly low in APAC amid moderate energy prices and the redirection of exports away from the U.S. (amanda.lee@wsj.com)

 

(END) Dow Jones Newswires

November 25, 2025 02:10 ET (07:10 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment