South-east Asia headed for economic shifts when rate cut ripples across region
But regional central banks may not cut rates as swiftly as Fed as they did not raise rates as aggressively
FIRST, the markets said June. Then it became July. September, specifically, this week, is now the order of the day.
Federal Reserve chair Jerome Powell all but sealed the deal for a rate cut this month with his “the time has come” statement at August’s Jackson Hole Symposium. The question now isn’t when anymore, but how deep.
Until August, South-east Asia’s major central banks, including those in Malaysia, Thailand, and Indonesia, held off on rate cuts, opting for a cautious approach to monetary policy. Mindful of currency stability amid the “higher-for-longer” narrative, they are awaiting the Fed’s next move while navigating global economic pressures and inflation.
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