DBS CEO: Easing by Fed, ECB Would Cause Volatility in Asia

   By Natasha Brereton-Fukui 
 

SINGAPORE--DBS Group Holdings Ltd. (D05.SG) Chief Executive Officer Piyush Gupta said Wednesday that he expects western central banks to ease policy further in the near future, causing volatility in Asia.

Addressing clients in Singapore, Mr. Gupta said he saw quite a high likelihood of the U.S. Federal Reserve implementing another round of stimulus in the next couple of weeks, given recent lacklustre data.

"If there's monetary policy easing in Europe or in the U.S., as I think there will be, then you will see again in Asia a whole flood of money coming in like happened last year in July and August," Mr. Gupta said.

"When a lot of money flows into Asia, that plays havoc with currency rates and interest rates. And therefore, there is a case to expect to see volatility in currency rates and interest rates on the back of easing policy in the West," he said.

Write to Natasha Brereton-Fukui at [e-mail]