Inflation has made a comeback in Japan, with the CPI surging as high as 4.3% this year, a level unseen for three decades. What should the BOJ do to strike a balance between stimulating economic growth and ensuring price stability?
As a highly open economy, Korea is sensitive to unexpected shifts in the U.S. monetary policy stance.
During 2022, the Korean won (KRW) exchange rate was highly volatile as the U.S. economy emerged from the pandemic and the U.S. dollar (USD) strengthened following the hawkish policy stance of the U.S. Federal Reserve.
The Japanese economy is expected to grow at 1.2 percent in 2023 above its potential growth rate after a moderate 1.1 percent recovery in 2022.
Following a strong 6.3 percent expansion last year, Hong Kong’s GDP is expected to contract by 2.5 percent in 2022 before rebounding by 4.3 percent in 2023.
This paper quantifies the likelihood of spillovers to emerging ASEAN-4 economies and Korea from shifts in US monetary policy.
During a visit in early November, AMRO staff met with market participants in Tokyo to seek their views on recent developments in Japan’s financial markets and risks to the outlook.
One of the longest-held notions in the financial markets is that the Japanese yen (JPY) is a safe-haven currency.
The US Federal Reserve’s (“Fed’s”) monetary policy tightening has roiled markets most of this year.
Hawkish shifts in the US Federal Reserve’s monetary policy have often led to heightened financial and economic stress in emerging economies.