Asia-Pacific Central Banks: 2025 Grades & Economic Outlook

The Asia-Pacific region in 2025 presents a dynamic and varied landscape for central bankers, characterized by both robust growth stories and persistent economic headwinds. From navigating inflationary pressures and geopolitical trade tensions to implementing digital currency initiatives and crucial financial sector reforms, the central bank governors across this vast region have demonstrated diverse strategies and achieved a spectrum of outcomes. This report card evaluates their performance, highlighting key policy decisions and their impact on their respective economies.

Australia | Michele Bullock: B+

The Reserve Bank of Australia (RBA), under Governor Michele Bullock, faced market scrutiny in July by opting against a cash rate cut, despite a discernible weakening in the employment market, evidenced by a four-year high jobless rate of 4.3% the preceding month. Bullock's strategic philosophy, articulated in a Sydney speech, advocates for a "measured and gradual" approach to monetary policy. This stance followed two prior cash rate reductions, settling the rate at 3.85%, before another 25 basis point cut in August. Favorable inflation dynamics bolster Bullock's position, with core inflation at 2.7% in June, a consistent decline since its December 2022 peak. Furthermore, the Australian dollar’s modest 1.8% depreciation against the US dollar has not exerted undue pressure on domestic inflation. Australia, however, grapples with common Western economic challenges: sluggish growth, exorbitant housing costs, and elevated government debt, alongside fiscal sustainability concerns. While its 35.5% debt-to-GDP ratio remains comparatively manageable, it is projected to rise. The RBA anticipates 1.7% GDP growth for 2025, a notable deceleration from the 3% average observed in the two decades leading up to the COVID-19 pandemic.

Azerbaijan | Taleh Kazimov: B+

Central Bank Governor Taleh Kazimov has prudently revised Azerbaijan's 2025 GDP growth expectations downwards to 3%, a slight reduction from April's 3.3% projection and a slowdown from 2024's 4.1%. Inflation is also on an upward trajectory, with the Finance Ministry forecasting 5.4% for the year, a significant increase from 2.2% in 2024. Despite these revised forecasts, strategic foreign exchange reserves have shown robust growth, increasing by 9.4% to $77.4 billion in the year leading up to July. Ongoing reforms aimed at modernizing financial institution regulation and supervision, initiated as part of the Financial Sector Development Strategy 2024-2026, are expected to enhance stability and reduce systemic risk within Azerbaijan's banking industry, as noted by S&P.

Bangladesh | Ahsan Mansur: C+

Assuming leadership of Bangladesh Bank in August 2024 amidst significant national turmoil, former economist Ahsan Mansur immediately confronted the urgent need to stabilize financial institutions, stimulate economic growth, and address rampant inflation. His mandate includes restoring confidence in the Bangladeshi taka, which has depreciated by approximately 4% against the US dollar this year, and re-establishing the country's appeal as an investment destination. Mansur's immediate action was a decisive 50 basis point hike in the overnight repo policy rate to 9%, swiftly followed by two further increases, reaching 10% by October. This monetary tightening has proven effective, with inflation moderating from an initial 10.5% to 8.55% in July, and Mansur confidently forecasts a further reduction to 5% by year-end. Despite calls to ease policy to boost growth, estimated at 3.9% for the fiscal year by the Asian Development Bank (a stark contrast to the 6.4% annual average between 2010 and 2020), he has maintained the 10% policy rate. Crucially, Mansur has initiated a comprehensive three-year reform roadmap, supported by the International Monetary Fund, focusing on banking system consolidation, resolution of nonperforming loans, and an overhaul of bankruptcy and restructuring legislation, aiming to rekindle Bangladesh’s past growth trajectory.

Cambodia | Chea Serey: A-

National Bank of Cambodia (NBC) Governor Chea Serey made an immediate impact upon her appointment in July 2023, overseeing a robust 5.5% GDP growth and 2.1% inflation for that year. Under her leadership, NBC's foreign exchange reserves saw a significant 13% surge to $20 billion, providing a comfortable seven months of import cover, further expanding to $22.5 billion by February 2024. This substantial reserve position has prompted the NBC to explore utilizing these funds for green and sustainable projects within Cambodia via bond purchases. The momentum has continued into 2025, with first-half growth reaching a solid 5.9%, even in the face of steep US tariffs, which, though initially as high as 49%, have since been reduced to 19%. Core inflation remained moderate at 2.9% during this period, with a full-year reading of 2.4% anticipated. Governor Serey has consistently prioritized the digital economy, exemplified by the launch of a cross-border QR-code payment system with Japan in July and a tourist-centric digital currency app, Bakong, in January. Further cementing regional financial integration, the NBC joined the Regional Payment Connectivity initiative in April, expanding ASEAN’s collaborative payment network.

China | Pan Gongsheng: B+

China’s economy under People's Bank of China (PBOC) Governor Pan Gongsheng (appointed July 2023) continues to be challenged by a persistent lack of demand response to supply-side policies. This demand weakness is largely attributable to a severe real estate market correction, eroding consumer sentiment and hindering growth in retail sales and services, compounded by an aging demographic and ongoing trade tensions. The resulting deflationary pressures have prompted proactive measures from Governor Pan. In May, following renewed US tariff threats, the PBOC significantly loosened monetary policy, cutting the seven-day reverse repo rate by 10 basis points and both the one-year and five-year loan prime rates, bringing them to their lowest levels since 2019. Additionally, a 50 basis point reduction in the required reserve ratio (RRR) was implemented, expected to inject approximately 1 trillion renminbi (about $140.5 billion) of long-term liquidity into the system. These timely interventions, though US tariffs were later suspended, underscore the potential impact of trade friction, with experts like Lian Ping, chairman of the China Chief Economist Forum, projecting a 2%-2.5% decline in exports for every 10% tariff increase. Chinese banks have also cut deposit rates, facing record-low net interest margins of 1.4% in the first quarter. With credit demand remaining subdued, the effectiveness of these supply-side measures in achieving the government's 5% GDP growth target for 2025 remains a key question.

Hong Kong | Eddie Yue: B+

Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA), has diligently managed the Hong Kong dollar's stability amidst a widening US dollar-Hong Kong dollar interest rate differential. This differential created an attractive carry trade for speculators, leading to prolonged weakness in the local unit and putting significant pressure on the HKD's 7.75-7.85 trading band against the US dollar. To counteract this, the HKMA actively intervened in the foreign exchange market, conducting 11 interventions since late June, including draining over HK$3.37 billion (approximately US$433 million) in liquidity within a single week. These interventions successfully boosted Hong Kong dollar funding costs and deterred carry trades, pushing the local currency to a three-month high. Concurrently, Yue has championed the advancement of digital currencies within the city-state. By July, 22 Hong Kong banks were licensed to distribute digital assets domestically, resulting in a remarkable increase of over 200% in transaction volume year-on-year. Furthermore, he oversaw the implementation of the Stablecoin Ordinance in August, establishing a comprehensive licensing regime for fiat-referenced stablecoin issuers, thereby positioning the HKMA as a key supervisor and enforcer in this evolving digital finance landscape.

India | Sanjay Malhotra: Too Early To Say

The Reserve Bank of India (RBI) welcomed a new governor, Sanjay Malhotra, in December, succeeding the highly regarded Shaktikanta Das. Malhotra, previously the revenue secretary in the Narendra Modi government and holding a master’s degree in public policy from Princeton University, is known for his strong working relationship with India’s Finance Minister Nirmala Sitharaman. He assumes leadership at a critical juncture, facing significant pressure to ease monetary policy. This pressure stems from the Trump administration's imposition of 50% tariffs on India in August, coupled with a notable decline in GDP growth to 5.4% in the third quarter, marking a seven-quarter low for the Indian economy. His initial actions and policy direction will be closely watched by domestic and international markets.

Indonesia | Perry Warjiyo: A

Perry Warjiyo of Bank Indonesia stands out as one of the Asia-Pacific region’s most seasoned central bank governors, having served since 2018. Throughout his tenure, he has consistently demonstrated a profound understanding of monetary policy, effectively controlling inflation while fostering growth in ASEAN’s largest economy. Despite lingering market uncertainty surrounding the impact of Trump tariffs, which currently stand at 19% for Indonesia, the country's GDP growth is projected to reach 5.1% in 2025, an increase from 5% last year, with Warjiyo suggesting it could even be higher. In response to anemic credit growth, which dipped to 7% in July from 7.8% the previous month, Warjiyo proactively unveiled 383 trillion rupiah (approximately $23.4 billion) in macroprudential liquidity incentives in August. These incentives were strategically channeled through state-owned banks, development banks, domestic private commercial banks, and foreign bank branches, targeting various sectors including real estate, trade, manufacturing, transportation, tourism, micro, small, and midsize enterprises (MSMEs), and green businesses. Although the rupiah experienced a sharp spike in April due to threats of a 32% tariff, momentarily touching its lowest level against the dollar since the 1997 Asian Financial Crisis, it has since stabilized, trading back to 1,620 by August, reflecting successful currency management.

Japan | Kazuo Ueda: B-

Under Governor Kazuo Ueda, the Bank of Japan (BoJ) has navigated a complex economic landscape. The yen reached an all-time low of 161 yen to the dollar in July last year, preceding the BoJ's second rate tightening of 2024 by 15 basis points, which pushed the short-term policy rate to 0.25% and triggered a significant one-day crash in the Japanese stock market. Ueda attributed this volatility to fears of an American recession, an explanation that garnered skepticism given Japan’s recent abandonment of 17 years of ultra-easy money in response to domestic inflationary pressures. Increasingly, policy decisions from the US, particularly the Trump tariffs, appear to be influencing the BoJ’s monetary stance, making further rate tightening less of a certainty. Annual wholesale inflation has slowed for the third consecutive month in June, indicating an abatement of the inflationary pressures that prompted earlier rate hikes. The unresolved Trump tariffs, reportedly at 15% on Japan in July, have already led the BoJ to halve its 2025 GDP growth projection from 1.2% to 0.6%, with Japan's exports experiencing their largest monthly drop in four years in July, largely due to reduced shipments to the US. Compounding these challenges, Japanese government bonds (JGBs) have suffered profound weakness, with an August 20-year auction attracting scant demand amid political uncertainty and concerns over potential fiscal expansion. The BoJ has, however, acknowledged this threat to financial stability and is moderating its quantitative tightening program by continuing to purchase JGBs, albeit at a tempered pace.

Kazakhstan | Timur Suleimenov: B+

National Bank of Kazakhstan (NBK) Governor Timur Suleimenov oversaw a robust first half of 2025, marked by a 7.4% increase in international reserves, reaching $112.3 billion. The economy experienced a remarkable 6.2% GDP growth, its highest in 14 years, propelled by an 8% expansion in the non-oil economy and a 5.2% rise in the services sector. Trade figures were also impressive, up 8.4% to $59.7 billion, culminating in a healthy $6 billion current account surplus. Despite these achievements, persistent inflation remains Suleimenov’s primary challenge, standing at 12% in early September, even with a stable exchange rate. With the NBK committed to a 5% inflation target, Suleimenov communicated to a joint parliamentary session in September that monetary policy would maintain a restrictive stance to achieve this objective.

Kyrgyzstan | Melis Turgunbaev: B

Under Chairman Melis Turgunbaev, the National Bank of the Kyrgyz Republic (NBKR) is contending with inflation that reached a 21-month high of 8.8% in July, driven by rising food and transportation costs. This overshoot of the NBKR’s 5%-7% target range indicates a sustained tight monetary policy stance, with the 9.25% discount rate likely to remain stable. Amidst these inflationary pressures, the banking sector emerged as a significant bright spot: total assets at commercial banks surged by 24% in the first half of 2025, system liquidity remained robust, and the volume of noncash transactions witnessed an impressive twelvefold increase, showcasing resilience and modernization within the financial system.

Laos | Bounkham Vorachit: Too Early To Say

The Lao economy is showing promising signs of stabilization, with indications that the Bank of the Lao PDR (BOL) under Bounkham Vorachit may be moving past the severe challenges of recent years, particularly the debilitating runaway inflation that hit 31% in 2023. The kip has achieved greater stability, significantly aided by the introduction of the market-based Lao FX (LFX) platform in August 2024. A sustained period of tight fiscal and monetary policy is now effectively dampening inflationary pressures. The LFX platform, managed by BOL in collaboration with 15 commercial banks, facilitates spot FX trades for the US dollar, renminbi, and Thai baht via mobile banking, using the kip as an intermediary currency, and has successfully narrowed the gap between parallel and official exchange rates. Inflation moderated to 5.3% in July, a substantial reduction from the double-digit figures recorded earlier in the year. Foreign exchange reserves also improved, reaching $2.6 billion in June, sufficient for 3.1 months of import cover. Concurrently, the Lao government posted a record-high fiscal surplus in 2024 and anticipates another in 2025, signaling the effectiveness of its five-year consolidation goals. However, high levels of external debt and corresponding debt-service obligations, currently managed through short-term bond issuance and debt suspension, pose ongoing impediments. These factors could potentially lead to renewed exchange rate pressure and a resurgence of inflationary expectations, indicating an urgent need for a comprehensive debt-restructuring exercise.

Malaysia | Abdul Rasheed Ghaffour: B+

Malaysia’s economic performance in the second quarter saw growth at 4.4%, slightly below the government’s 4.5% forecast. Bank Negara Malaysia (BNM) issued a cautious warning regarding the impact of US tariffs on the nation’s export-oriented economy. Days later, in a widely anticipated move, BNM Governor Abdul Rasheed Ghaffour, a relatively new incumbent since July 2023, cut the overnight policy rate (OPR) by 25 basis points to 2.75%—the first such reduction in five years—and also narrowed the OPR corridor to 2.5%-3%. This bold decision followed a four-year low inflation rate of 1.2% in June and an unexpected drop in exports, alongside a 100 basis point easing of the required reserve ratio (RRR) to 1.00%, also a first in five years. These actions demonstrate Ghaffour's acute awareness of Malaysia's economic pulse and external risks. The ringgit's 5.6% appreciation against the US dollar this year has further alleviated imported inflationary pressures and reduced external debt-service costs. While Malaysia may slightly undershoot Prime Minister Anwar Ibrahim’s 4.5%-5.5% GDP growth target for the year, the narrowing cost of five-year credit default swap (CDS) protection for the sovereign, at 39 basis points in early September compared to 18 basis points tighter in July, signals a favorable market perception of Malaysia's risk profile.

Mongolia | Byadran Lkhagvasuren: A-

Byadran Lkhagvasuren, Governor of the Bank of Mongolia (BOM) since 2019, has expertly steered an economy heavily reliant on minerals and susceptible to adverse weather conditions. The mining and agriculture sectors are poised to drive an impressive 6.6% GDP growth in 2025, as forecast by the Asian Development Bank, fueled by strong copper demand and a robust recovery in agriculture from harsh winter conditions. Second-quarter GDP rebounded significantly to 5.6% from a lackluster 2.4% in the March quarter. Inflation has steadily moderated, reaching an eight-month low of 8.1% in July, down from a January peak of 9.6%, which had prompted BOM to tighten rates by 200 basis points to 12% two months later. While this intervention proved effective, further easing is unlikely this year as BOM targets a 5% CPI by 2026. Macroprudential policy was also strengthened at the March monetary policy meeting, with a reset of the upper limit for the debt-service-to-income ratio at 50% for newly issued and restructured consumer loans. Fitch Ratings upgraded Mongolia’s ratings to B+ with a stable outlook last September, citing stronger foreign exchange reserves, lower debt, and more manageable external debt maturities, enhancing the country’s resilience to commodity market shocks.

Myanmar | Than Than Swe: D

The Central Bank of Myanmar (CBM), under Governor Than Than Swe, faces severe economic contraction, with a World Bank report forecasting a 2.5% shrinkage this year, exacerbated by the devastating earthquake in March. Rampant inflation, estimated by the Asian Development Bank to reach 29.3% this year, coupled with widespread power outages, further compounds the contractionary dynamic. Monetary policy remains tight, with the policy rate reported at 9% in April, while the government grapples with a fiscal deficit equivalent to 5.5% of GDP. The kyat remains highly volatile, operating with both an official and a parallel market for foreign currency. In an effort to stabilize the banking sector and boost liquidity, the CBM increased the interest rate paid on excess bank reserves to 6% in March. However, a deeply entrenched dysfunctional financial sector persists, and despite the urgent need for a foreign exchange trading platform similar to Laos’s model, concrete plans for such a development are conspicuously absent.

Nepal | Biswo Nath Poudel: Too Early To Say

Biswo Nath Poudel assumed office as the 18th governor of the Nepal Rastra Bank in May, following a period of intense political maneuvering within Nepal’s National Assembly. A seasoned professional economist, Poudel previously served as vice chairman of the National Planning Commission. Shortly after his appointment, he outlined ambitious goals, announcing a 5% Consumer Price Index (CPI) target for the fiscal year 2025-2026, intended to align with the government's broader objective of achieving 6% full-year GDP growth. His initial tenure will be closely observed as he navigates the nation's economic challenges and opportunities.

New Zealand | Christian Hawkesby: Too Early To Say

Christian Hawkesby was appointed interim governor of the Reserve Bank of New Zealand (RBNZ) in April for a six-month term. Having served as RBNZ deputy governor since 2022 and possessing extensive experience in senior roles at the Bank of England until 2010, including head of market intelligence, Hawkesby stepped into the role following the unexpected resignation of long-serving Governor Adrian Orr in March. In an August speech, Hawkesby put forth a significant proposal: to lower domestic lenders’ capital requirements. The objective of this measure is to unlock lending capacity and thereby stimulate economic growth within New Zealand.

Pakistan | Jameel Ahmad: B-

Under Governor Jameel Ahmad, the State Bank of Pakistan (SBP) executed a highly aggressive easing campaign between May 2024 and June of this year, slashing the policy rate by an extraordinary 1,100 basis points. This decisive action was taken in response to moderating inflationary pressures and a stabilizing external financial position, resulting in the policy rate being halved to 11% since May of last year without inducing adverse volatility in the rupee – a significant achievement. The SBP's August Monetary Policy Report projects inflation to comfortably remain within the 5%-7% range through the 2026 fiscal year, a stark improvement from the 38% peak recorded during Pakistan’s financial crisis in May 2023. The banking sector exhibits robust health, boasting a decade-high capital adequacy of 21% and strong earnings. Furthermore, the government’s capital account shifted into surplus in the first eight months of this year, driven by a recovery in exports and increased overseas-worker remittances. These positive trends prompted Fitch Ratings to upgrade Pakistan’s Long-Term Issuer Default Rating to B-/Stable from CCC+ in April, citing economic recovery, structural reforms, and improved fiscal performance. Fitch anticipates the country’s real GDP growth to accelerate to 3.5% by 2027 from 2.5% in 2024.

The Philippines | Eli Remolona: A-

Governor Eli Remolona has steered the Bangko Sentral ng Pilipinas (BSP) with distinguished authority and commendable transparency since assuming office in July 2023, often conveying the BSP's strategic thinking with refreshing candor to investors and market participants. When the peso dipped to a 10-week low against the US dollar in June, Remolona pragmatically stated in a Bloomberg interview, "It’s futile to intervene when it’s a strong-dollar story driven by safe-haven flows," a stance that was followed by the peso's subsequent recovery to its April level. This nuanced approach has allowed the BSP to embark on a sustained easing program since August 2024, with cumulative policy rate cuts totaling 150 basis points, including a recent 25 basis point reduction to 5% in August. The aggressive monetary easing has been facilitated by remarkably low inflation rates, with the headline rate reaching a six-year low of just 0.9% in July, well below the BSP’s 2%-4% target. This policy is aligned with the government's aim of achieving the upper end of its 5.5%-6.5% GDP growth target. Second-quarter growth came in at 5.5%, buoyed by strong performances in the agricultural, forestry, and fisheries sectors, alongside robust services and industry contributions. A potential landmark achievement for Governor Remolona's legacy is Project Agila, the wholesale central bank digital currency (CBDC) prototype, which successfully completed its testing phase last December. Its scheduled introduction next year represents a strategic move to modernize the Philippines’ financial ecosystem and enhance financial inclusivity.

Singapore | Chia Der Jiun: A-

The Monetary Authority of Singapore (MAS), led by Managing Director Chia Der Jiun since January of last year, proactively eased monetary policy settings in April. This was the second loosening this year, achieved by reducing the slope of its policy band, a decision prompted by anticipated global trade headwinds stemming from the new Trump tariff regime. Despite Singapore and Australia receiving the lowest US tariffs in APAC at 10%, Singapore’s economy, deeply dependent on trade and global supply chains, necessitates hypervigilance as these tariffs begin to impact the global economy. An April MAS Monetary Policy Statement accompanying the easing announcement warned of "downside risks to Singapore’s economic outlook," emphasizing that "a more abrupt or persistent weakening in global trade will have significant ramifications on Singapore’s trade-related sectors, and in turn, the broader economy." The Singapore dollar has emerged as APAC’s second-best performing currency, appreciating approximately 3.6% against the US dollar this year amid broader dollar weakness, effectively dampening imported inflationary pressures. As a result, the core inflation rate eased to a 0.5% in July, its lowest since 2021. GDP growth registered 4.4% in the second quarter, and a September MAS survey of economic forecasters projected a full-year growth of 2.4%, citing better-than-expected navigation of trade tensions, even as concerns persist regarding potential high sectoral tariffs on key exports like semiconductors and pharmaceuticals. Furthermore, a testament to Der Jiun’s effective management, the MAS reported a record profit of 19.7 billion Singapore dollars (about $15.4 billion) for the financial year ended March 31, significantly bolstered by a SG$31.4 billion gain in the bank’s investment portfolio.

South Korea | Rhee Chang Yong: B-

Governor Rhee Chang Yong of the Bank of Korea (BOK) has operated against a tumultuous political backdrop, including the impeachment and removal of President Yoon Suk Yeol. This political instability has demonstrably impacted international investor confidence in South Korea. In an August announcement, the BOK forecast 2025 growth at 0.9% and inflation at 2%, maintaining the policy rate at an unchanged 2.5%. The central bank issued cautions regarding persistently high household debt, an inflated housing market, and sluggish domestic demand, though it anticipates a "modest recovery" as the year progresses. A critical concern highlighted by the BOK is the export outlook: "Exports are likely to show favorable movements for some time but are likely to gradually slow as the impacts of US tariffs expand." Newly installed President Lee Jae Myung's proactive engagement with US President Trump, just days before the BOK's rate decision, proved instrumental. He successfully negotiated a reduction of South Korea’s reciprocal tariffs with the US from 25% to 15%, facilitated by President Lee's commitment to drive $350 billion of investment into the US. This tariff reduction is pivotal for South Korea, given that exports constitute 44% of its GDP, with the US being the country's second-largest export destination after China.

Sri Lanka | Nandalal Weerasinghe: A

Sri Lanka’s economy has remarkably rebounded from the severe crisis of three years ago, a turmoil caused by political misgovernance and a collapse in foreign exchange reserves. This recovery, while supported by a $2.9 billion IMF program, owes substantial credit to the astute leadership of Central Bank of Sri Lanka (CBSL) Governor Nandalal Weerasinghe, who took office in April 2022 immediately after the crisis hit. The turnaround is evident in an estimated 5% GDP growth last year, with the World Bank forecasting 3.5% for 2025, and Weerasinghe himself projecting 4%-5% in a July Singapore summit speech. Ultra-low inflation, which registered -0.6% year-on-year in June, has allowed for an accommodative monetary policy, with the Overnight Policy Rate (OPR) last cut by 25 basis points in May to 7.75%. However, Sri Lanka’s $3 billion export outflow faces a significant threat from Trump tariffs, initially set at 44% in April before a three-month pause and subsequent reduction to 30% in July. Governor Weerasinghe stated in his July speech, "I think we are in a right balance in the monetary policy. We have some space if we are to relax further, but I think right now we have a cautious approach." He also initiated a simplification of the CBSL’s short-term dual policy rate mechanism, consolidating the Standing Deposit Facility Rate and Standing Lending Facility Rate (each cut by 250 bps in May 2023, initiating the easing cycle) with the OPR, streamlining monetary operations.

Taiwan | Yang Chin-long: A-

Taiwan's economy has demonstrated strong resilience, with GDP growth recovering to 4.6% last year from 1.1% in 2023, and projected to hit 2.1% this year, having surged by 5.5% in the first quarter. This growth rate compares favorably with other developed economies, even as Taiwan confronts a 20% reciprocal tariff rate from the Trump administration. The Central Bank of the Republic of China (Taiwan), under Governor Yang Chin-long since 2018, has maintained a firm control over inflationary pressures. Headline CPI and core inflation both declined last year to 2.2% and 1.9% respectively, further moderating in the first half of 2025 to 2% and 1.65%. Significantly, import prices for both US dollar-denominated and Taiwan dollar-denominated goods decreased by 2.6% and 1.1% respectively, indicating an absence of imported inflationary pressure. The bank has adopted a progressive and gradual approach to monetary tightening, raising the policy rate six times and the required reserve ratio (RRR) four times since March 2022, effectively dampening inflationary expectations, with the rediscount rate now at a 16-year high of 2%. Furthermore, the central bank has proven nimble in its macroprudential strategy: it utilized moral suasion to encourage mortgage lenders to curb real estate lending in August 2024, followed by its seventh round of selective credit control in September. This comprehensive approach has yielded success, leading to a decline in housing transactions, a slowdown in the pace of housing-price increases, and a reduction in the ratio of real estate lending to total bank lending.

Thailand | Vitai Ratanakorn: Too Early To Say

Vitai Ratanakorn is set to assume leadership of the Bank of Thailand in October for a five-year term, succeeding former Governor Sethaput Suthiwartnarueput. His appointment comes amidst a period of administrative turbulence, including the installation of a new prime minister in early September. Ratanakorn previously served as president and CEO of the Government Savings Bank, where he gained recognition for spearheading initiatives aimed at reducing household debt and enhancing financial inclusivity for underserved segments of the Thai population. His prior experience suggests a focus on social and economic welfare in his new role.

Uzbekistan | Timur Ishmetov: Too Early To Say

Timur Ishmetov was appointed governor of the Central Bank of the Republic of Uzbekistan in December last year. His professional background includes a significant tenure as the country’s finance minister, a position he held between 2020 and 2022. This prior experience in fiscal policy is expected to inform his approach to monetary policy and financial governance in his new role.

Vietnam | Nguyen Thi Hong: A+

Vietnam's economy has delivered an outstanding performance, with GDP growth "barnstorming" at 7.5% in the first half of 2025, marking the highest rate in APAC and for Vietnam in 15 years. This remarkable achievement makes the government's ambitious full-year growth target of 8.3%-8.5% appear increasingly attainable. A significant portion of this success is attributable to the State Bank of Vietnam (SBV) under Governor Nguyen Thi Hong, who has masterfully balanced growth with economic stability, avoiding overheating through adept management of its relationship with the domestic financial sector. Credit growth surged by 19.3% in the year to June, compared to the same period in 2024, underpinned by a proactive macroprudential strategy. Last December, the SBV issued specific lending targets to credit institutions and mandated them to reduce operational costs through digital technology adoption, thereby enabling the provision of loans at more affordable rates. Consequently, average rates for new loans at commercial banks declined by 64 basis points to 6.3% per annum in the first half. Systemic reform of credit institutions, particularly ongoing nonperforming loan (NPL) resolution, has been a key priority for the SBV. Furthermore, the SBV has consistently supplied foreign currency to domestic credit institutions as needed, contributing to the dong's stability. Core inflation has remained moderate at 3.2% in July, a three-month low. Among other enviable achievements, Vietnam recorded a record current account surplus of 6.6% of GDP last year, and trade has soared in 2025, reaching an all-time high of $43.4 billion in August. While significant headwinds could emerge from the 20% Trump tariffs levied on Vietnam, their full impact has yet to be observed.