According to Jinshi Data, Goldman Sachs Group pointed out that due to the strengthening of the US dollar and the possible imposition of tariffs by the Trump administration, central banks in Asia will remain cautious in promoting loose policies. Andrew Tilton, chief Asia-Pacific economist at Goldman Sachs, said that the Bank of Korea is not expected to cut interest rates further this week.
Indonesian officials warned last week that political developments in the United States have reduced room to cut borrowing costs. Tilton believes the possibility of tariffs and a dollar near multi-decade highs will lead to a slow pace of rate cuts. Exchange rates and exchange rate stability are very important to Asian central banks.
