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Asia's central banks have little motivation to hike rates in 2019

The U.S. Federal Reserve on Wednesday raised rates for the fourth time this year, as expected, but signalled a slower pace of hikes in 2019 than it previously projected

Marius Zaharia | Reuters  |  HONG KONG 

Weaker economic growth and tepid price pressures in Asia will leave central banks in the region with few reasons to tighten policy next year -- especially as U.S. rate hikes slow -- unless a new bout of currency weakness forces them to do so. The U.S. Federal Reserve on Wednesday raised rates for the fourth time this year, as expected, but signalled a slower pace of hikes in 2019 than it previously projected. The Fed policy outlook is a major factor driving emerging currencies in Asia and a less aggressive rate outlook next year generally eases foreign exchange selling pressure ...

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First Published: Thu, December 20 2018. 15:10 IST
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