Dollar lending in East Asia can override local monetary policy, says BIS' McCauley

Asia globe

Low interest rates in major advanced economies can override local monetary policy in emerging economies where firms choose to borrow in foreign currency, according to new research by Robert McCauley of the BIS and Dong He of the Hong Kong Monetary Authority (HKMA).

The paper, published today by the Bank for International Settlements (BIS), analyses the transmission of major economies' monetary policy to East Asia, and presents results suggesting the emergence of "rapidly growing" foreign currenc

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: