Indonesia and the Philippines raised interest rates as surging food and energy prices prompt policy makers across Asia to tackle inflation even as growth slows.
Bank Indonesia increased borrowing costs for the second straight month today, raising the rate used as an indication for bill sales to 8.5 percent from 8.25 percent. Bangko Sentral ng Pilipinas raised its policy rate by a quarter of a percentage point to 5.25 percent, the first increase in more than two years.
Indonesia and the Philippines join Vietnam and Pakistan, which last month increased interest rates as near-record oil costs and surging rice and wheat prices stoke inflation. India and Malaysia may follow suit after their governments today raised petrol prices to stem crippling subsidy costs.
``It's a real dilemma for the central banks,'' said Robert Subbaraman, chief economist at Lehman Brothers Asia Ltd. ``They are facing their most testing time since the Asian crisis ten years ago.''
No comments:
Post a Comment