Taiwan’s central bank left its benchmark interest rate unchanged at 1.25% in their September meeting. The bank has kept rates steady since February, after rapidly reducing them by a cumulative 237.5 basis points in seven installments since June 2008. Rates are presently at record levels in nominal terms, and close to the lows briefly reached in the mid 1990s in inflation-adjusted terms.

Brazil’s industrial production dropped sharply in November (6% year-on-year), led by a double-digit fall in auto production—although it is clear that the abrupt decline was not just an auto sector-related phenomenon; the USoriginated credit shock had a nearly immediate impact of such magnitude as to induce a contraction of nearly all segments of industry during November.

As expected, the Bank of Korea (BoK) cut its Base Rate by 50 basis points to 2.50%. This was the fifth cut in as many meetings, which have brought the Base Rate down by a cumulative 275 basis points since October.

Inside: Cover Story: ECB: Readying to Ease? - Focus on Emerging Markets: Lessons from the 2001 Recession

Surprising on the up-side and offsetting most of the March 6.6% year-on-year drop, Philippine exports grew by 4.9% in April.

Exceeding expectations, China’s retail sales grew by 22.0% year-on-year in April, the fastest pace in over nine years.

As expected, the Bank of Korea (BoK) voted to leave its benchmark interest (the uncollateralized overnight rate) unchanged at 5.0% following its latest policy meeting. The BoK has now left policy on hold since August 2007.

The emerging market world appears more inflationary than recessionary at present. There is still little evidence of damage from the US recession.

On the back of a 0.57% month-on-month gain, Indonesia’s CPI inflation rose from 8.17% year-on-year in March to 8.96% in April, clearly above market expectations.

Data on production of both goods and services suggest that the Korean economy enters 2008 on a strengthening path.