Nomura: Asia's next round of monetary policy easing could begin soon

The next round of monetary policy easing in Asia could begin soon, economists and analysts at Nomura wrote in a report. Most Asian central banks have been sitting on the sidelines of late, having cut interest rates to neutral levels and the equivalent tariff rate in the US was more favourable than announced in April. However, they said disappointing economic growth, weak inflation and easing concerns about financial stability could prompt Asian central banks to ease monetary policy. In our view, the widespread expectation that the Federal Reserve will start cutting interest rates in September provides another trigger for Asian central banks to ease policy. Nomura expects further rate cuts in India, South Korea, Thailand and Indonesia.