Asian central banks can do little as Covid cases surge, recovery falters

In Asia as Covid-19 cases are surging and slow pace of vaccinations, relegating central banks to a supporting role as interest rates already low, policies will center on more government borrowing.

Asia’s surging coronavirus infections and slow pace of vaccinations is testing the limits of what central banks can do to further support what, until recently, had been the world’s stand out economic recovery.

With interest rates already low, the likely policy response will center on more government borrowing, relegating central banks to a supporting role. That backdrop will overshadow decisions this week where policy makers are expected to keep rates on hold -- Indonesia, South Korea and New Zealand.

“In my view, there is little room for further monetary policy stimulus, at least in terms of traditional policy levers like