Korea cuts, Bank Indonesia on a knife edge

The Bank of Korea cut interest rates today and we are expecting the central banks of Thailand and the Philippines to follow suit at their scheduled meetings on Wednesday. The Monetary Authority of Singapore is likely to leave policy settings on Monday unchanged amid above-target inflation. Bank Indonesia’s decision on Wednesday is likely to be a close call, but the recent drop in the rupiah against the US dollar means BI is more likely to leave rates on hold than cut again.

We will be holding an online briefing on Wednesday to unpack the decisions from the four central bank meetings taking place next week. You can register here.