The persistent strength in core services inflation in some EMs outside Asia raises the chances that central banks cut interest rates by less than the consensus expects this year, not least because it comes amid a strengthening of the US dollar and concerns of upward shocks to oil prices. That said, we do not expect any other central banks to follow Bank Indonesia in resuming interest rate hikes in the coming months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services