THE data picture across the region paints a mixed outlook although it continues to affirm that price pressures persist. Even so, it appears that the macro backdrop is turning more conducive to diverging policy paths.

The Philippines central bank raised rates higher than expected more than a week ago following blowout inflation numbers for January and lifted its inflation forecast sharply for 2023. Indonesia is showing signs of moderating inflation, which recently prompted Bank Indonesia to keep its key interest rate unchanged after six straight hikes.

In Malaysia, price pressures have eased owing to subsidies and price control measures, with Bank Negara Malaysia also standing pat on its key rate in January to balance the risks to inflation and growth. Singapore’s recently-released headline inflation edged up slightly in January although it undershot forecasts.