Pantheon Macroeconomics

Best viewed on a device with a bigger screen...

23rd Nov 2022 11:51Question of the week

Speculation of policy pivots towards a slower pace of tightening in global monetary policy have intensified in recent months, and they have not reached south sast Asia. Granted, Bank Indonesia and Bangko Sentral ng Pilipinas both raised rates aggressively last week, by 50bp and 75bp, respectively, to 5.25% and 5.00%. We think this marks a peak in the pace of rate adjustment, with a pivot to 25bp and 50bp in the next meeting for Bank Indonesia and Bangko Sentral ng Pilipinas, respectively.

In Indonesia, Governor Perry Warjiyo offered a few hints that pivot is coming with the comment that 50bp represents a “front-loaded” and “pre-emptive” measure. In Indonesia, the central bank remains worried about core inflation, for little reason in our view. Indeed, Governor Medalla all but admitted that domestic economic conditions do not warrant maintaining the current pace of tightening.

Miguel Chanco, Chief Emerging Asia Economist

Asia pilipinas bangko indonesia

Free Trial

Recent Webinars:

U.S. Webinar April 2023: Recession Incoming...The Labour Market Is Set To Weaken

Chief U.S. Economist Ian Shepherdson

Eurozone Webinar March 2023: The ECB Is Still Focused On Rising Core Inflation; Is It Making A Policy Error?

Chief Eurozone Economist Claus Vistesen

Consistently Right
Access Key Enabled Navigation
Keywords for: Chart of the Week 23rd November 2022

independent macro research, Pantheon Macro, Pantheon Macroeconomics, independent research, ian shepherdson, economic intelligence, Asia, pilipinas, bangko, indonesia,