FinanceAsia did a survey recently of what senior economists think the US rate cut will mean for Asias prospects.
Firstly, no one is predicting a recession, but they pointed out that Asian export growth is falling faster than expected. Geoffrey Barker, chief economist, HSBC explains Capital flows have changed because of rising US interest rates and greater risk aversion on the part of fund managers. Tightening liquidity conditions and slowing exports are going to hit where there has already been some loss of momentum.
Are we likely to see further rate cuts in the near future Yes, possibly as early as the end of January, says Sun-Bae Kim, economist with Goldman Sachs....
