The Trump administration’s tariffs come at a time when Asian economies are already grappling with tepid growth, with sticky inflation keeping some central banks on high alert.
Asia is bearing the brunt of new US tariffs which will drag on regional growth through weaker business investment and sentiment, requiring central banks to step in with more interest-rate cuts.
Economists at Goldman Sachs Group Inc. have cut growth forecasts for Asia and predict an easier monetary policy stance in India, South Korea, and several Southeast Asian economies.
Money markets are now pricing four more rate cuts this year by Australia’s central bank, up from three previously, which would take its cash rate to 3.1%.