Indonesia, Philippine Rate Paths May Diverge on Inflation
- Both central banks kept their key rates steady on Thursday
- Philippines says rate hike is on the table in November
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Central banks in the Philippines and Indonesia extended their interest-rate pause on Thursday, while signaling that approaches may differ as their inflationary paths diverge.
Bangko Sentral ng Pilipinas Governor Eli Remolona said a key rate increase is on the cards at its November meeting amid upside risks to inflation. Minutes later, his Indonesian counterpart Perry Warjiyo said he sees price gains remaining within target as he held the benchmark rate at a four-year high of 5.75%.