Bank Indonesia held its policy rate at 4.75% amid inflation pressures and rupiah weakness, but we expect a cut in December to support growth. Risks remain skewed toward delays if currency pressures persist or the Fed postpones easinga
In a dovish turn, the Philippines’ central Bank, the BSP, has cut rates by 25bp to 4.75%, citing softening growth and subdued inflation. Infrastructure spending concerns and corruption scandals add downside risks to our 2026 GDP outlook. The chances of a final 25bp rate cut in December have increased meaningfully
We see both supply-side and demand-side reasons for the relative outperformance of production in the high-tech manufacturing sector. On the supply side, high-tech manufacturing sectors tend to receive more domestic policy support, creating stronger incentives for capital expenditure.
