Central Banks
Indonesia, Philippine Policy Rate Paths Seen Diverging
- Indonesia likely to stand pat, Philippines is seen to hike
- Both have been aggressive in tightening to tackle inflation
Residential and commercial buildings in Central Jakarta, Indonesia.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Two Southeast Asian central banks are likely to take different policy actions on Thursday as inflation paths diverge, with the Philippines seen raising borrowing costs again to cool prices and Indonesia expected to hit the brakes on tightening.
All 25 economists surveyed by Bloomberg see Bangko Sentral ng Pilipinas raising its benchmark rate, with 13 predicting a half-point increase and the rest a 25 basis-point move. Meanwhile, 26 of 28 surveyed on Bank Indonesia’s decision expect it to stand pat, with the rest betting for a quarter-point hike.