OCBC Selena Ling on Central Banks, China

The video discusses the US inflation report and its impact on potential Fed rate hikes, suggesting a high bar for reducing rates. It also covers Japan's monetary policy, focusing on potential interventions and the yen's pressure. China's economic outlook is analyzed, highlighting weak consumer sentiment and potential policy easing. Finally, Singapore's monetary policy is reviewed, noting factors contributing to inflation and potential further tightening.

What is the main factor that could influence the Fed's decision to hike interest rates by 75 basis points?

• A decrease in consumer spending

• An increase in housing prices

• A significant drop in core inflation

• A rise in unemployment rates

According to the San Francisco Fed study, when is inflation expected to return to the 2% target?

• Late 2023

• Early 2025

• Mid 2024

• Late 2024

What is the main concern for the Fed in reducing interest rate hikes from 75 to 50 basis points?

• Sending a weak signal to the market

• Increasing inflation rates

• Rising housing market prices

• Decreasing employment rates

What is the current strategy of the Bank of Japan regarding the yen?

• Direct market intervention

• Reducing government spending

• Increasing interest rates

• Verbal jawboning

What is the expected impact of the Party Congress on China's economic conditions?

• Immediate economic recovery

• Sudden relaxation of all policies

• Gradual easing of COVID restrictions

• Increase in property sales

What structural factor is contributing to core inflation in Singapore?

• Tight labor market

• Reduction in GST

• Decrease in public transport fares

• Decline in housing prices

What is the potential benefit of softer inflation prints in China?

• Stronger currency value

• More room for policy easing

• Increased foreign investment

• Higher consumer spending