SINGAPORE , Oct. 10, 2024 /PRNewswire/ -- The ASEAN+3 Macroeconomic Research Office (AMRO) today launched its ASEAN+3 Financial Stability Report (AFSR 2024) , which analyzes the latest market developments and potential risks within the ASEAN+3 region, while offering comprehensive analyses on some key challenges confronting the region. Since December 2023 , financial risks in the ASEAN+3 region have evolved: while some risks (high inflation, higher for longer interest rate) have subsided, others (geopolitical tensions) have intensified.
The region is poised to face a wide range of risks and challenges to financial stability in the near- to long-term. The first half of 2024 experienced an easing in global financial conditions as the US Federal Reserve (Fed) concluded its policy rate hiking cycle. Market movements were primarily influenced by expectations around the Fed's actions.
However, in the third quarter of 2024, uncertainties about the US growth outlook, compounded by the unwinding of yen carry trades, sparked notable market volatility. The Fed commenced its monetary easing in September, which has led to an easing of monetary conditions, but uncertainties around inflation and growth outlook linger. Moreover, the geopolitical situation in the Middle East remains fragile and the result of the upcoming US presidential election remains a major source of uncertainties for financial markets.
"Overall, the risk to financial stability across ASEAN+3 in 2024 appears lower than in .