India to Indonesia: Emerging Asia central banks run out of room to wait

The Reserve Bank of India's move last week to keep the reverse repo rate unchanged surprised markets, which had expected the bank to raise rates to begin policy normalization

Emerging Asia’s central banks have enjoyed room to pause on monetary policy and focus on supporting growth, but pressure to shift course may be building as their global counterparts turn more hawkish and if inflationary pressures build at home.

India, Indonesia and Thailand kept their benchmark interest rates at record lows last week, and the Philippines also stood pat Thursday, as they navigate tentative economic recoveries amid continued virus outbreaks. 

But a more aggressive U.S. tightening cycle and oil’s rise toward the highest since 2014 could change the thinking of the region’s policy makers, most of whom have indicated plans to