Four Asian Central Banks On Deck Next Week as Fed Taper Fears Dominate

As global markets tremble in anticipation that the U.S. Federal Reserve will decide next week to begin tapering its monetary stimulus, four central banks in the Asia-Pacific with very different comfort levels are likely to hold interest rates steady at policy meetings on Thursday.

Indonesia, the Philippines, South Korea and New Zealand have all been buffeted by stormy markets since May, when the Fed first hinted that it could finally begin calling time on the easy money go-round that has lasted almost five years.

As the shake-out in emerging markets progresses, investors have become more discriminating, sticking more easily with those economies that show good growth prospects, low inflation and healthy fiscal and external balances.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza