The global weather phenomenon is already raising food and commodity prices, and increasing input costs, putting pressure on margins and working capital.
April's US inflation reading was the highest since May 2023. The Philippines has also been hit with inflation of 7.2% in April as the result of the high oil price as the Strait of Hormuz remains blocked.
The Fed is concerned about inflation coming from tariffs and energy prices. An attack on the world's largest gas facility is increasing concerns of a prolonged conflict in the Middle East as the price of oil soars above $110 a barrel. Many Asian countries are taking emergency measures.
MAS is expected to take a balanced monetary stance in the months ahead; the FY 2026 Budget included a 40% corporate income tax refund for the 2026 year of assessment.
Feb 23, 2026
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As Australia rolls out the new reporting system for CPI, the central bank is now less likely to cut interest rates at its next meeting in December; some market commentators are now expecting rates to rise in 2026.
The US Federal Reserve has decided to cut interest rates by 0.25% in a meeting this week after the US created only 22,000 jobs in August, well below trend.
The US Fed has kept the interest rate unchanged while the US has agreed a 15% tariff rate with South Korea; the BOJ is anticipated to keep interest rates steady this week.
Bank of America’s Venkat Eachur has shared with CT his views on inflation, supply chain shifts and digital disruption impacting treasurers in Asia, and how they can de-risk and capitalise on some strong domestic economies, amid an uncertain macro environment.
In an uncertain global economy, one prediction that market participants are in unanimous agreement on is the prospect of rate cuts in developed markets. What does this mean for corporate treasurers, asks John Chiodi, chief investment officer, liquidity Americas, at HSBC Asset Management.