Asia Growth Forecasts Head South

Consensus growth forecasts have tumbled across the region amid growing uncertainty over the economic slowdown in China and Japan. Key indicators paint a less-than-optimistic picture for these two nations, and regional economies are feeling the effects of the downturn. In September, both New Zealand and Taiwan decided to trim rates in an effort to shore up growth prospects following disappointing Q2 national accounts data. Monetary easing also occurred in India, after the Reserve Bank of India (RBI) opted to cut its repo rate for the fourth time this year. In addition the RBI lowered its FY15/16 GDP growth forecast, but appears to be confident that inflation is declining after slashing its key policy rate by 50 basis points to 6.75%.

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