Strong Dollar Keeps Rate Hikes on Table for Asian Central Banks
- Traders expect more hikes in Asia even as other regions cut
- Indonesia and the Philippines resumed tightening this month
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Asian central banks are seen to raise interest rates over the next six months, with a stronger dollar and rising oil prices keeping countries from Australia to Indonesia and South Korea on a tightening path.
Traders see an average 13 basis points of hikes in the Asia-Pacific region, excluding China, over the period, according to market implied policy rates. That compares with bets that rates will remain unchanged in developed markets excluding Asia while hefty cuts are seen in Europe, the Middle East and Africa as well as Latin America.