Asia’s Economy will Likely Contract by 1.6% this Year

Asia’s economy is expected to shrink this year “for the first time in living memory,” the International Monetary Fund said, warning that the region could take several years to recover. The fund said in a blog post published Tuesday that Asia’s economy will likely contract by 1.6% this year — a downgrade from its previous forecast of no growth in April. (CNBC)

Federal Reserve officials showed no readiness at their June meeting to commit to yield-curve control but did reveal an eagerness to provide more guidance in the coming months on the future path of interest rates and asset purchases. “Many participants remarked that, as long as the committee’s forward guidance remained credible on its own, it was not clear that there would be a need for the committee to reinforce its forward guidance with the adoption of a YCT policy,” minutes published Wednesday of the June 9-10 Federal Open Market Committee meeting showed. (Bloomberg)

Source: Danareksa Sekuritas Debt Research

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