The Asian industrial supercycle is leading to diverging interest rate paths: Morgan Stanley

Morgan Stanley’s Rajeev Sibal says central banks of Asian economies at the forefront of the AI-led investment and growth will be more likely to raise interest rates, while those that aren’t will not have to be as hawkish as before with falling oil prices and the Fed’s potential hold on rates. He also says the ECB’s expected rate hike later this year will be effective in anchoring inflation expectations.