Goldman Axes Indonesia Rate-Cut Forecasts, Flags India Hikes

Goldman Sachs Group Inc. dropped its call for monetary easing in Indonesia this year while adding interest-rate hikes for India and the Philippines as the US-Israeli war on Iran drives up energy prices and boosts inflation across Asia.

Central banks in economies with less anchored inflation expectations, greater exchange-rate sensitivity and higher pass-through from fuel prices are more likely to tighten policy, prompting it to also bring forward further tightening in Singapore and add another rate increase in Australia, the economists wrote in a note Tuesday.