The economics story China doesn't own

CHINA'S ECONOMIC SLOWDOWN has rippled through Asia. Tourists aren't flocking to Thai beaches or Singaporean malls in the numbers anticipated. Factories are struggling, and there are questions about whether Beijing can bankroll public works in the manner to which the neighbourhood has become accustomed.

- DANIEL MOSS

One glaring omission from the list of spillovers: interest-rate cuts.

China's travails aren't translating into easing in its backyard. The People's Bank of China has been pushing down domestic rates and trimming bank reserve requirements in an effort to free cash for lenders to support the recovery. But in shaping financial conditions, the Federal Reserve still rules. Chair Jerome Powell's press conference Wednesday will get more eyeballs than any speech by PBOC boss Pan Gongsheng.

Rate reductions, once pencilled in by economists for late this year and early 2024, now look more distant in South Korea and Indonesia. In the Philippines, officials insist they are ready to hike again, if needed. Sure, they worry about China - just not so much that they are ready to move too far from the Fed.

By and large, monetary authorities have adopted a version of the higher-forlonger mantra espoused by US policymakers. That means most of the tightening is done. But don't even think about a pivot to something looser. Inflation has retreated, but is still too far from targets. That's a message Powell is likely to reinforce after this week's meeting of the Federal Open Market Committee.