Once we detect a trend...we can evaluate that and act on that. If something is uncertain, that's the most difficult thing.
Generally, (Indonesia) is still gradually improving. When we had the positive outlook, we thought it was improving faster.
The ratings reflect Taiwan's strong external position and robust economy in a challenging policy environment in which fiscal flexibility has weakened.
Most banking systems in the Asia-Pacific region have improved their credit profiles, thanks to stable economic conditions and continuing structural improvements. This is in spite of rising oil prices and interest rates threatening the broader economic recovery.
Underlying growth is still okay at around 4%-5%, but what is important is that inflation does fall in the next two to three months.
There is always this worry that such a spending plan will widen the budget deficit. If India misses the deficit target again, it could dilute its commitment to fiscal consolidation. Giving dole doesn't resolve poverty.
Already, the market consensus is for inflation to fall. We are expecting that too.
The ratings on Taiwan could be lowered if further fiscal slippages cause the debt burden to rise markedly.
If the reforms become entrenched and future bad loans are reduced, then there are chances of the government's ratings being upgraded.
Copyright © 2024 Electric Goat Media. All Rights Reserved.