Asia: Strong growth outturns in China and Singapore are reinforcing expectations of further currency appreciation
Mon, Apr 19 2010, 17:44 GMT
Economic and Financial Market Highlights (12-18 April 2010)
Strong growth outturns in China and Singapore are reinforcing expectations of further currency appreciation, and highlighting efforts to curb property prices and inflationary risks.
The focus was on China, which saw rapid Q1 GDP growth of 11.9% year-on-year. The faster-than-expected outturn and rising property prices highlight overheating risks, which believe are manageable with further measures to rein in credit, and as seen in a moderate inflation outturn and slowdown in new loans for March.
Nevertheless, the strong growth reinforced speculation of an early revaluation of the RMB. Elsewhere, Singapore posted a strong Q1 GDP estimate of 32.1% (q/q, annualized), and the MAS tightened monetary policy, which fueled appreciation pressures throughout the region. The coming week will feature monetary meetings in India (25bp hike expected), Thailand, and the Philippines, as well as Korean Q1 GDP, trade data in Japan, and March inflation in Singapore.
Mon, Apr 19 2010, 17:44 GMT
Economic and Financial Market Highlights (12-18 April 2010)
Strong growth outturns in China and Singapore are reinforcing expectations of further currency appreciation, and highlighting efforts to curb property prices and inflationary risks.
The focus was on China, which saw rapid Q1 GDP growth of 11.9% year-on-year. The faster-than-expected outturn and rising property prices highlight overheating risks, which believe are manageable with further measures to rein in credit, and as seen in a moderate inflation outturn and slowdown in new loans for March.
Nevertheless, the strong growth reinforced speculation of an early revaluation of the RMB. Elsewhere, Singapore posted a strong Q1 GDP estimate of 32.1% (q/q, annualized), and the MAS tightened monetary policy, which fueled appreciation pressures throughout the region. The coming week will feature monetary meetings in India (25bp hike expected), Thailand, and the Philippines, as well as Korean Q1 GDP, trade data in Japan, and March inflation in Singapore.