More Asia Interest-Rate Cuts on the Way, Morgan Stanley Says

Asian central banks will continue to cut interest rates into next year, though limited policy space and elevated debt levels will make this a modest easing cycle for some, according to Morgan Stanley.

Taking dovish cues from the U.S. Federal Reserve, Indonesia and the Philippines will unwind some of the aggressive tightening from 2018, while India and Malaysia will likely continue easing to support weakening economies, said Deyi Tan, Hong Kong-based Asia economist at Morgan Stanley.