Summary

• Growth across Asia is easing gradually, while inflation is only inching higher.
• The most immediate adjustment so far has been in FX, where moves have been sharper and faster than in real activity or prices.
• Divergence is increasingly driving policy decisions, and we expect most Asian central banks to raise rates in the third quarter.

By Deepali Bhargava, Regional Head of Research, Asia-Pacific

Growth across Asia is easing gradually, while inflation is only inching higher. The most immediate adjustment so far has been in FX, where moves have been sharper and faster than