First, there is the crisis created by North Korea’s nuclear and missile development. This is certainly an area of concern and where the risk has risen.
Second, it does seem that the Trump administration is gearing up for more trade protectionism. Frustrated with China’s continued support for North Korea, the worry is Trump will take more aggressive protectionist measures against China.
Finally, one should consider the implications of policy going forward in countries within the region. For instance, Singapore is in a sweet spot as growth looks to surprise on the upside while inflationary pressures are well under control.
However, should growth continue to steam ahead, the Monetary Authority of Singapore may deem it appropriate to restore the gradually appreciating slope of the policy band in its April policy meeting.
For policy shifts in Indonesia, Thailand, Malaysia and the Philippines as well as their implications, check out Issue 796 of The Edge Singapore (week of Sept 11) which is on sale now.
