2019 US rate cuts prompted Bank of Indonesia rate adjustments, while Bank of Thailand maintains 2.5% rate amid inflation and export concerns.

The US Federal Reserve's interest rate changes significantly influence Southeast Asian economies, particularly Indonesia and Thailand. Following US rate cuts in 2019, the Bank of Indonesia adjusted rates similarly. Currently, the Bank of Thailand is expected to maintain its 2.5% rate despite inflation pressures, as a stronger baht affects export competitiveness. Economic growth in Thailand is projected at 2.5% for this year, with potential improvements from rising tourism and government spending.

October 13, 2024
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