Goldman Sachs: Asian countries are expected to slow down their rate cuts due to US tariff risks

Odaily News Goldman Sachs Group Inc. said that given the strength of the U.S. dollar and the risk of tariffs imposed by the Trump administration, central banks in Asia will be cautious in moving forward with further easing policies. Andrew Tilton, Goldman Sachs' chief Asia-Pacific economist, said that Goldman Sachs does not expect the Bank of Korea to cut interest rates further this week. Last week, Indonesian officials warned that the room to reduce borrowing costs has narrowed due to political developments in the United States. Tilton said, "With the possibility of tariffs coming and the dollar approaching a multi-decade high, we think the pace of rate cuts will be quite slow. I think the dollar is also one of the important influencing factors because exchange rates and exchange rate stability are very important to central banks in Asia." (Jinshi)