IRS: Changing Expectations

It's not just Australia (see 'Receiving Rates In A Deflationary Environment', in our Daily Financial Alert) where the markets are rapidly reassessing their expectations of interest rate hikes in the coming quarters. Across emerging Asia, we are seeing a re-pricing of short-term money market rates - a corollary, in our view, of renewed deflationary concerns following events in Dubai and Vietnam, and question marks over the sustainability of economic recovery once base and restocking effects recede.

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