Something Has Got To Give – Rates Or FX, As Thailand, The Philippines, And Indonesia’s Central Banks Swim Against The Fed Rising Tide

Alicia García Herrero (Natixis) | With the Fed persisting on raising rates in the next several months after its jumbo 75bps rate hike and Asian inflation accelerating, Asian central banks that choose to hold rates or trail the Fed substantially are de-prioritizing the inflation fight by letting their FX weakens versus the USD, absorbing more inflationary pressures on the import side. With Southeast Asia demand normalizing, supply shocks lingering, inflationary…