Asian Central Banks Exercise Caution Amid Strong Dollar And Tariff Risks

According to Odaily, Goldman Sachs has indicated that Asian central banks are likely to proceed cautiously with further easing policies due to the strengthening of the US dollar and the risk of tariffs imposed by the Trump administration. Andrew Tilton, Goldman Sachs' Chief Asia-Pacific Economist, stated that the bank does not expect the Bank of Korea to implement further interest rate cuts this week. Last week, Indonesian officials warned that the scope for reducing borrowing costs has diminished due to developments in the US political landscape. Tilton noted, "With the potential imposition of tariffs and the dollar nearing its highest levels in decades, we anticipate that the pace of rate cuts will be quite slow. I believe the dollar is also a significant factor, as exchange rates and their stability are crucial for Asian central banks."