Monetary policy tightening through interest rate hike is nearing its end in Asia, said Morgan Stanley, as the inflation in the region is mostly cost-push — meaning supply chain-led — in nature. "This is informed by our perspective that Asia’s inflation is most cost-push in nature and so central banks do not have to take rates deeply into restrictive territory," Morgan Stanley said in a report titled ‘The Viewpoint: The Tightening Cycle Is Peaking’ authored by economists Chetan Ahya, Derrick Y Kam, Qiusha Peng, and Jonathan Cheung.
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