Tightening Liquidity Hurts Emerging Markets: Will Contagion Spread to Asia?

US: Growth Remains Strong, Re-Igniting Risks of Overheating

Fewer Doubts About US Economic Acceleration … Fears of Monetary Tightening Likely to Intensify

Normalisation of Global Monetary Conditions Now Hurting Emerging Economies

Economist, Centennial Asia Advisors

Jason Tan

Economist

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

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Macroeconomics

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<strong>Inflation accelerated to 1.9% in May 18,</strong> from 1.2% in Apr 18, closing in on the 2% target. This was echoed by ECB officials, including chief economist Peter Praet who has reaffirmed his confidence in the “underlying strength” of the economy in spite of some near-term weakness. Bundesbank President Jens Weidmann has also stated that inflation will return to target. Seen in this light, the ECB’s Governing Council meeting on 14 Jun 18 will take on added significance as the central bank makes clear…</li></ul>


Inflation accelerated to 1.9% in May 18, from 1.2% in Apr 18, closing in on the 2% target. This was echoed by ECB officials, including chief economist Peter Praet who has reaffirmed his confidence in the “underlying strength” of the economy in spite of some near-term weakness. Bundesbank President Jens Weidmann has also stated that inflation will return to target. Seen in this light, the ECB’s Governing Council meeting on 14 Jun 18 will take on added significance as the central bank makes clear…

Europe: ECB Monetary Tightening Could Add to Liquidity Concerns for Emerging Markets