OCBC: The central banks of Indonesia and the Philippines are expected to raise interest rates by 25 basis points each; the Federal Reserve’s decision will impact capital flow expectations.
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(1) OCBC Bank Group Research Department analysts predict that Bank Indonesia and the Central Bank of the Philippines may each raise interest rates by 25 basis points later on Thursday. (2) The Federal Reserve's decision to keep rates unchanged may indicate to these Southeast Asian central banks that capital flow volatility will persist in the short term, so their policy decisions will continue to be guided primarily by considerations such as inflation and macroeconomic stability. (3) OCBC Bank specifically pointed out that the expected rate hike by Bank Indonesia will align with its efforts to prevent further deterioration in market sentiment.
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