Policy easing to gather pace

We are expecting another year of below-trend economic growth in 2025 across Asia, as subdued exports, worsening labour markets and tighter fiscal policy weigh on demand. Inflation is back to target nearly everywhere. With growth set to struggle and oil and food price inflation likely to fall back, price pressures are likely to remain low. We expect the central banks of Korea, India and Thailand to join Indonesia and the Philippines by cutting rates over the coming months. Taiwan (strong growth) and Malaysia (inflation concerns) are two that are likely to remain on the sidelines. In most places, rate cuts are likely to be a little more aggressive than financial markets are expecting.

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