Mostcentral banks across the region will continue tightening policy settings thisyear, although the pace of policy normalisation will vary between countries. Wecompare the policy outlook for the Reserve Bank of India(RBI) and Bank Indonesia(BI). Although the RBI appears more hawkish than BI, we believe that bothcentral banks are likely to hike policy rates back to “neutral” levels of around7-8% by year-end.
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