Thai Rate Increase Puts Onus on Indonesia to Follow

Thailand’s unexpected interest-rate increase may escalate pressure on Indonesia to follow suit after inflation accelerated in the world’s fourth-most populous nation.

Thailand brought to three the number of boosts to borrowing costs in the Southeast Asian nation this year, matching Malaysia’s moves. Indonesia, the region’s largest economy, has yet to take the step, and will probably keep its benchmark rate at 6.5 percent at a meeting tomorrow, according to all 20 economists in a Bloomberg News survey.