UBP's McFarland Says Rate Cutting Cycle in Asia Is Over

The video discusses rising inflation pressures in Asia, driven by PPI and CPI data from countries like South Korea, Taiwan, and China. It explores the impact of commodity prices on inflation and currency values, particularly the Australian dollar. The discussion shifts to Japan's economic indicators, including export data and GDP figures, and concludes with an analysis of the Japanese yen's direction in relation to US yields and BOJ policies.

What is one of the main reasons for the end of the rate-cutting cycle in Asia?

• Strong currency values

• Decreasing commodity prices

• Rising inflation pressures

• High import bills

How do commodity price increases typically affect inflation indicators?

• They first appear in PPI numbers

• They have no impact on inflation

• They decrease interest rates

• They immediately increase CPI

What recent economic data from Japan was surprising given the strong GDP and PMI figures?

• High inflation rates

• Weak export performance

• Strong currency value

• Decreasing commodity prices

What is the Bank of Japan's current stance on long-term yield targets?

• They are undecided on the target

• They have removed the target

• They want to maintain the current ceiling

• They plan to increase the target

What is a potential outcome if US yields rise according to the discussion on the Japanese yen?

• The yen will weaken

• The yen will remain stable

• The yen will become unpredictable

• The yen will strengthen