February 2022 - Macro Indicators

Over one fifth of the world’s population celebrate Lunar New Year
on February 1st, 2022 – the most important holiday on the
calendar for many Asian cultures, particularly the Chinese. We
are heading into a year of the Water Tiger which occurs every 60
years. In China, the tiger is considered the king of all beasts,
symbolizing strength and bravery.


China is certainly making a strong and brave move at a time when
many central banks around the world are taking an increasingly
aggressive stance to counter rising inflation. With the U.S.
inflation rate reaching a 40-year high, the Federal Reserve (Fed)
communicated a hawkish move toward policy normalization in
January. By contrast, the People's Bank of China is on a
different path and has been easing monetary policies to counter
the slowing economic growth. China’s bold move stemmed from its
ability to deliver 8.1% GDP growth in 2021, despite the headwinds
from the COVID-zero policy and the slowing for-sale residential
sector. The second largest economy of the world is not the only
country deviating from the U.S. Historically, most central banks
in Asia Pacific followed the path of the Fed. However, this time
around, several central banks in Asia Pacific are responding to
different circumstances. We are heading into a rare territory of
diverging global monetary policies.





Tse Elysia - Head of Research & Strategy (Asia Pacific)