Bank Indonesia Has Room to Pause, Continuum Economics Says

The video discusses the economic outlook for emerging markets, focusing on the impact of Fed rate hikes and the potential easing of pressures on Asian currencies. It highlights Indonesia's potential to pause rate hikes due to preemptive measures and liquidity risks. Thailand is expected to raise rates to build policy space amid softened growth. The Philippines faces challenges with negative real rates and a severe current account deficit, necessitating further rate hikes despite inflation expectations easing.

What is expected to alleviate the pressure on Asian currencies next year?

• An end to the Fed's rate hiking cycle

• A rise in commodity prices

• A decrease in global oil prices

• Increased foreign investments

Why might Indonesia consider pausing its rate hikes?

• To align with global monetary policies

• To boost economic growth

• Because of preemptive measures against the Fed's rate hikes

• Due to a decrease in inflation

What is Thailand's primary reason for considering a rate hike?

• To increase foreign investments

• To stabilize the currency

• To build policy space for future economic downturns

• To combat high inflation

What challenge is the Philippines facing with its current interest rates?

• Currency devaluation

• Excessive foreign debt

• Negative real rates

• High inflation rates

What is a significant factor contributing to the Philippines' current account pressures?

• Infrastructure plans

• Decreased remittances

• Low export demand

• High import tariffs