China rate cut to have limited impact on real economy: ANZ

SINGAPORE – In an update of its Asia Economic Review, ANZ Bank says China’s rate cut may excite the market, but it will have limited impact on the real economy. “(China’s) PMI may show recent growth-boosting measures bearing fruit,” ANZ says, suggesting that India’s Q3 growth is likely to have come off sharply but things are looking up ahead.”

“Growth in the Philippines likely softened, too, due to Government underspending. Regional inflation likely to be soft, except in Indonesia from the fuel price hike.”
On Asian currencies, ANZ says the JPY remains the key driver, particularly of  the KRW and TWD. Dissolution of Japan’s lower house and the call for an election in Japan will add to uncertainty and volatility in the JPY (and Asia FX) in coming weeks.” www.live.anz.com (ATI).