Asian central bankers expect US to raise rates soon

Are the banks prepared for the impact?

It has been noted that Asian central banks are prepared to fight the Fed and manage currencies weaker.

According to a research note from UBS, Asian central bankers generally believe the US will be raising rates sooner or later just like most.

The fact that they have been cutting rates over the past six months tells one, in UBS' opinion, they've decided they can lean against future-Fed tightening and manage depreciating currencies in an orderly fashion.

Here's more from UBS:

Asian countries generally have the resources for a protracted divergence in policy with the Fed.

The good news is that much of Asia will continue to lower rates; the bad news is that Asian currencies should continue to drift weaker as a result.

Obviously, Singapore and Hong Kong should be considered outliers to this view where rates will likely follow US rates higher.

This is already happening in Singapore in anticipation of rising US rates, perhaps.