Central Bank Rates Seen Peaking Soon in Southeast Asia
- Rate hikes seen to end as early as the first quarter
- Indonesia, Malaysia to announce rate decisions Thursday
Philippines is likely near the end of its key rate increases.
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Southeast Asian central banks look like they are close to done fighting inflation using interest rates, with economists seeing the tightening cycle ending after 25- to 50-basis points of moves in the coming months.
Policymakers in Indonesia, Philippines and Thailand will each raise borrowing costs by a total half-point in the coming months before reaching their peak rates, according to median forecasts in a Bloomberg survey. Malaysia, meanwhile, will cap the rate hike cycle with one more quarter-point increase, the survey showed.