Let's head to Hong Kong now and join in the current Bloomberg's Chief Asia Economics correspondent. Always a lot to talk about with Enda, but we're looking at these intervention warnings across Asia. The Bank of Korea going to buy up to two point one billion dollars of sovereign debt, and Indonesia and Japan, as we know, have stepped in to defend their currencies to so just tell us, I guess the flow on effects of the FED tightening here
across Asia. Yeah, we do. You seem to be in a cycle now where the central banks are actively having to push back and fight against markets. Like you mentioned, they're either intervening to buy bond securities to keep down borrowing costs, or the intervening on the in the foreign exchange markets like we saw with Japan last week when I intervene, the government of Japan intervened to buy its own currency for the first time. Since it's not just
an Asia phenomenon. Of course, we've seen the big dramatic news overnight with the Bank of England also having to intervene and by securities that the government, the British government sells there. So it's a powerful force. It's a powerful pushback when you have all of these monetary monetary authorities
intervening markets. But does raised the question about ultimately who will win here, because if you're talking about fundamentals which are pointing to you know, securities moving in an ongoing direction will end. The view is that just little central banks can do about that, and that was one of the takeaways from the PBOC job awning the PBOUC job wanning last time as well. PBC comment and said, listen, you can't have a one way beat against you. One
need direction. That's fine, but some economists were responding by saying, hang on, with the FED and PBUC going in such opposite directions, and with the Chinese economy in the state that it is, all of that obviously means that currency should be weaker and that would make it very hard for the PPUC to push back. Let's just get back to the Bank of England because that has been a
huge shock, I guess to market participants. Bank of America saying that essentially this is highlighted the impossible trinity of liquidity issues that are plague in global interest rate markets. Do you think the BOE has has done enough and what could happen next. Well, let's say obviously now during a curious set of circumstances, because you have a couple of things happening at once. You have the government, you know, put putting more money into the economy, bringing down taxes
and more and and pulling levers who support growth. You have the central bank raising borrowing costs in an effort to bring down inflation. But now you also have the central bank stepping into the financial market to bring down boring costs and ensure that the market has floated with liquidity and to ensure that there is a financial crisis. So you have the government and the central bank pulling
against each other. But even within the central bank, you have the central bank pulling against central bank because it's doing two different things at the same time. So look, it's clearly and modeled policy there at the moment. It probably at the very least does suggest in the case of the UK, that the Bank of England will have to hike interestrates by a big amount whenever they when they do meet the next sor if they decide to
go ahead of the meeting. Most anilests now seem to be talking about maybe a big one hundred Bates points hike there to try and push back against the inflation impact.
But as I say, rightly or wrongly, without getting into the politics politics or the ideology of a policy mix, the end result is that the markets are seeing it as a model, they are rejecting it, and now you have policy pulling in different directions and are always a pleasure, Thank you and the Karen is Bloomberg's chief Asia Economics correspondent with us in our Hong Kong studios