RBI, RBA and MAS 3 Asian Central Banks on Deck This Week

Central banks in India and Australia are set to issue policy decisions this week as both countries face concerns about bad debt.

The Reserve Bank of India (RBI) will announce its decision on Tuesday and Moody’s Analytics expects the RBI will cut its policy rate by 25 basis points to 6.5 percent.

“Inflation has largely been within the central bank’s 6 percent target, and the continued fiscal consolidation road map suggests that inflation is unlikely to spike,” Moody’s Analytics said. “High-frequency indicators suggest that growth hasn’t gained momentum in recent months.”

But ANZ said in a note Friday it expects investments in India to remain subdued due to high leverage and as banks will be focused on managing their non-performing loans after the RBI set a March 2017 deadline for them to clean up their balance sheets.

via CNBC

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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