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Executive Column: Deutsche Bank looks to widen scope in Indonesia
Alexander von zur Muehlen, CEO of Deutsche Bank for Asia Pacific and member of the management board, recently traveled to Indonesia where he met with business associates, government representatives and employees.
The banker discussed the state of Indonesia’s economy amid geopolitical turmoil and possible recession in Europe with The Jakarta Post's Mark Lempp and Fadhil Haidar Sulaeman, on Sept. 8.
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Deutsche Bank Asia Pacific CEO Alexander von zur Muehlen. (Deutsche Bank/-)
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strong>Alexander von zur Muehlen, CEO of Deutsche Bank for Asia Pacific and member of the management board, recently traveled to Indonesia where he met with business associates, government representatives and employees.
The banker discussed the state of Indonesia’s economy amid geopolitical turmoil and possible recession in Europe with The Jakarta Post's Mark Lempp and Fadhil Haidar Sulaeman on Sept. 8.
Question: With high energy prices due to sanctions and a suboptimal Chinese economic performance, how would you describe the state of the global economy?
Answer: In the near term, we are in a recessionary environment in the United States, with Europe being expected to follow.
You have a very determined Fed in terms of fighting inflation, and consequently we are probably going to see many rate hikes coming in the foreseeable future.
Given the de facto dollarization, by and large, there will be a significant effect in this regard as well, and many central banks in this part of the world will not follow on a one-for-one basis, but broadly speaking, will follow the Fed.
Europe will also need to fight inflation, and given its energy dependency on Russia, the immediate price effects are more severe than anywhere else in the world. Consequently, the ECB will also be subject to rate hikes, but we should expect an increasing rate differential between the euro and the rest of the world, as the ECB will try to simultaneously balance the impact on high debt-burdened nations in Southern Europe.
