SINGAPORE — Interest rate trajectories in Southeast Asia are diverging after the U.S. Federal Reserve cut last month, with central banks of export-driven countries like Thailand and Malaysia expected to only start easing next year or even later.
In contrast, Indonesia and the Philippines, both domestic demand-driven economies that have begun loosening in recent months, are expected to extend their rate cuts sooner to support growth. While both countries are logging some of the highest economic growth in the region, weaker household spending is weighing on their outlook.
