Oil fears keep S-E Asia’s central banks on their toes as they mull over easing plans
Economists see rate hikes or delayed cuts as policy space wanes and stagflation looms
Add BT as a preferred source
[SINGAPORE] South-east Asia’s economies came into the new year strong as trade and investments brushed off tariff fears in 2025, but the renewed threat of inflation from an oil shock could prompt its economies to delay their easing cycles – or even begin tightening.
Oil prices have surged more than 30 per cent since the onset of the US-Iran-Israel conflict, breaking above US$100 per barrel on Monday (Mar 9) as the closure of the Strait of Hormuz threatened global oil supply.
Across the region, inflation had largely been benign coming into 2026, leaving South-east Asia’s economies with ample policy space to boost growth through further rate cuts.
TRENDING NOW
Singapore developer in limbo after Timor-Leste’s shock scrapping of major township project
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
US-China summit: Trump sees ‘better’ ties, Xi warns over Taiwan, as talks conclude
That ‘cheap’ Malaysia condo could cost Singapore buyers far more than they think
