OCBC Analysts Expect Indonesia And Philippines Central Banks To Raise Rates By 25 Basis Points

OCBC Group Research analysts said Bank Indonesia and the Bangko Sentral ng Pilipinas may each raise interest rates by 25 basis points later on Thursday. According to Jin10, the analysts said the U.S. Federal Reserve’s decision to keep rates unchanged may lead Southeast Asian central banks to judge that short-term capital-flow volatility will persist. They added that, in this context, policy decisions in the region are likely to remain primarily driven by inflation and macroeconomic stability considerations. OCBC said the expected move by Bank Indonesia would align with its policy objective of preventing a further deterioration in market sentiment.