AI boom rolls on, as falling oil prices provide relief

Booming exports of AI-related products have helped offset the drag from higher energy prices and should continue to be an important driver of growth in Asia in the near term. The drop in oil prices will come as a relief to central banks across the region, but, with inflation likely to remain above target for most of the year, we still expect rate hikes in a number of places, most notably Korea and India. That said, the pace of further tightening will be gradual, and Malaysia, Taiwan and Thailand are among those countries likely to leave rates unchanged.