Indonesia will probably face more pressure than other Asian nations to raise borrowing costs this year after keeping its benchmark interest rate unchanged tomorrow, as plans to cut fuel subsidies boost inflation risks.
Singapore’s economy grew at the fastest pace in more than two years last quarter as services strengthened and manufacturing rebounded, reducing pressure on the central bank to ease monetary policy.
Analysts pared forecasts for Indonesia’s central bank to raise interest rates tomorrow after inflation slowed for the first time in four months.
The Philippine and Malaysian central banks will consider raising interest rates as Asia fights accelerating inflation stoked by surging oil and food prices.
Europe’s debt crisis and signs of a slowdown in global growth are complicating Malaysia’s decision on interest rates as a pickup in inflation coincides with dimming prospects for export gains.
Malaysia and South Korea may leave interest rates unchanged this week to protect growth as Europe’s debt crisis imperils demand for Asian exports.
"This was a very important step for Indonesia, and basically eliminated retail fuel subsidies overnight with oil trading where it is now."
- Daniel Wilson on Nov 17, 2014