It's Asia's turn as worst hit emerging markets set to hike rates

(Sept 26): For the most hawkish central banks in Asia, Thursday’s choice is less about whether to raise interest rates than by how much.

After Turkey and Russia surprised with strong policy action this month, the focus shifts to Indonesia and the Philippines this week as emerging markets struggle to contain a rout in their currencies. Pressure is building with the US Federal Reserve expected to tighten monetary policy again on Wednesday, adding to risks of capital outflows.

Most economists surveyed by Bloomberg predict a 25 basis-point increase in Indonesia, and a 50 basis-point hike in the Philippines on Thursday. The currencies of both nations have slumped more than 8% against the dollar this year, the worst performers in Asia after India’s rupee.

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