Asia: Fiscal space and funding plans in focus – ANZ

In view of analysts at ANZ, fiscal impulse looks set to pick up across Asia as importantly, fiscal and government funding positions in the current financial year have continued to run on track to meeting their full-year targets.

Key Quotes

“Fiscal slippage and supply risks are most immediate only in India. The next one week will see the announcements of bond issuance schedules for the next quarter in Indonesia, Thailand and the Philippines, as well as for H2 FY20 in India.”

“Monetary easing will remain the key policy option in markets with fiscal constraints. We expect the Reserve Bank of India’s (RBI) to play a central role in supporting the INR bond market via monetary and liquidity easing. We also see scope for deeper rate-cutting cycles in Indonesia, the Philippines, and potentially, Malaysia.”