Protecting the economy: A file picture shows a woman shopping at a supermarket in Jakarta. Indonesia and the Philippines both hiked rates by a total of 175 basis points last year to shield the economy against the emerging market rout.
JAKARTA: Low inflation sweeping across South-East Asia is here to stay, raising the odds some of the region’s biggest economies may reverse course on interest rates this year.
Food prices have been falling across the region, driving down inflation and pushing up real interest rates. Malaysia is already in deflation, while others like Thailand are seeing almost stagnant price growth. With the Federal Reserve turning more cautious on rate hikes, investors are bracing for further monetary policy easing in Asia after India took the first step last month.
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