Economics
Emerging Asia Builds on Defenses in Fed-Led Tightening Cycle
- Indonesia, Philippines both raise interest rates Thursday
- Taiwan, New Zealand held stances amid Fed, trade-war risks
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Asia’s worst-hit emerging markets moved on Thursday to protect their economies against growing threats from Federal Reserve tightening, a strong dollar, and escalating U.S.-China trade hostilities.
Following the Fed’s interest-rate increase Wednesday, Bank Indonesia raised rates for a fifth time this year, to 5.75 percent from 5.5 percent, while the Philippines delivered another strong hike of 50 basis points to 4.5 percent. In a busy day for regional central banks, New Zealand and Taiwan held their policy stances, while flagging growth risks from the trade conflict. In India, authorities took steps to support lenders and curb the rupee’s slide.