Asia FX: Central banks act as risk managers – MUFG
MUFG’s Michael Wan reviews recent decisions by Bank of Korea (BoK), Bangko Sentral ng Pilipinas (BSP) and Bank of Japan (BoJ), stressing a shared risk-management approach under uncertainty. BoK and BSP both hiked 25 bps but signalled a slower pace ahead while keeping tightening options open.
Asia's central banks have been acting as risk managers during times of uncertainty and inflation, according to MUFG's Michael Wan. Bank of Korea (BoK) and Bangko Sentral ng Pilipinas (BSP) both increased their interest rates by 25 basis points, signaling a more measured approach moving forward while keeping tightening options open.
Bank of Japan (BoJ) raised its 2026 and 2027 GDP growth forecasts, keeping inflation forecasts unchanged. The central banks' communications suggest a slower pace of rate hikes, despite their readiness to tighten policy if inflation persists. This consensus reflects a risk management strategy in the face of structural changes and potential shocks.
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