Inflation diverges in Southeast Asia’s two biggest economies
BANGKOK: Inflation in Southeast Asia’s two biggest economies, Indonesia and Thailand, diverged in March, putting the two nations on possibly different monetary policy courses.
Consumer-price growth in Indonesia eased to 2.48 percent last month, below the central bank’s 2.5 percent to 4.5 percent target band, while in Thailand, inflation quickened to a six-month high of 1.24 percent, climbing back into the 1 percent to 4 percent range.
Still, the implications of subdued prices are less straightforward for Bank Indonesia’s monetary policy as it comes out as a external balance-targeting monetary authority and not sticking with the conventional inflation-targeting framework adopted by most central banks in the emerging economies, Sambijantoro said. – Bloomberg