The policy status quo remains.
A rarely seen positive spiral has been formed.
Things are looking up
Based on our Nowcasting model, China’s real GDP may grow 6.8% in Q2; with risks titled to the downside.
With the Fed raising the target rate by 25 bps to 1.75%, local HIBOR rates will likely shoot up in tandem.
There are increasing signs that India’s growth has bottomed out and momentum is likely to improve here on.
We maintain our GDP growth forecasts at 5.3% and 5.4% for 2018 and 2019, respectively.
Advance estimates for 1Q17 suggest that the Singapore economy expanded 4.3%, up from 3.6% in the previous quarter.
Given that the cyclical tailwinds remain strong, we have revised our 2018 GDP growth forecast to 2.8%, up from 2.5%.