Quantitative easing in developed countries is a “key theme” for credit risk in emerging markets, Andrew Colquhoun , head of Asia-Pacific sovereign debt at Fitch Ratings, said today at a conference in Hong Kong.
Malaysian Prime Minister Najib Razak took steps for a shift toward fiscal prudence, scrapping sugar subsidies and unveiling plans for a consumption tax in 2015 while softening the impact with handouts to the poor.
Fitch Ratings said that any further deterioration in Indian government finances may “weigh” on the nation’s debt ratings, even though last week’s decision to increase the annual borrowing plan was expected.
Indonesia’s surprise interest-rate increase yesterday boosted the rupiah, stemming the currency’s biggest monthly decline in almost five years. To drive a sustained revival, the government needs to curb the country’s record current-account gap.