Bank Indonesia Ending its Hike Cycle, Says HSBC's Incalcaterra

The video discusses the actions of Asian central banks, particularly the Bank of Thailand and Bank Indonesia, in response to the Federal Reserve's monetary policy. It highlights the potential end of the Fed's rate hike cycle and its implications for Asian economies. The Bank of Thailand is expected to raise rates to prepare for future downturns, while Bank Indonesia may deliver one more hike to counter negative sentiment and manage its current account deficit. The video also explores the impact of a dovish Fed on trade tensions and emerging Asian assets, with a focus on Indonesia's policy measures and currency pressures.

What is the primary reason for the Bank of Thailand's decision to hike rates?

• To build policy ammunition for future downturns

• To align with the Federal Reserve's policies

• To control inflation

• To stimulate economic growth

How might a more dovish Federal Reserve next year affect emerging Asian markets?

• Cause a recession in Asian economies

• Lead to more rate hikes in Asia

• Reduce pressure on Asian assets

• Increase pressure on Asian assets

Which two countries are highlighted as having current account deficits and being prolific in hiking rates?

• India and China

• Malaysia and Singapore

• Indonesia and the Philippines

• Thailand and Vietnam

What has been a significant concern for Bank Indonesia this year?

• Low economic growth

• Currency appreciation

• Widening current account deficit

• High inflation rates

What could be a key driver for Bank Indonesia's short-term reaction function?

• Higher inflation rates

• A wider than expected trade deficit

• A stronger currency

• Increased foreign investment