Southeast Asia May Soon Need a ‘Plan B’ to Deal With Lowflation

Southeast Asia is set for another year of low inflation, generating difficult choices for the region’s central banks.

S&P Global Ratings sees inflation remaining below central bank targets in most cases in 2020, according to Shaun Roache, S&P’s chief APAC economist in Singapore. Policy makers may soon have to think about using tools other than interest rates to achieve their policy goals, he said.