China sits tight after US Fed hike, but Philippines, Indonesia pull trigger

China, Taiwan, and New Zealand sat tight after the Federal Reserve’s latest rate hike, but Indonesia and the Philippines pulled the trigger on Thursday to prop up their battered currencies and temper risks to inflation and financial stability. In a statement that marked the end of the era of “accommodative” policy, Fed policymakers lifted rates by 25 basis points (bps) to 2.00-2.25 per cent. The US central bank foresees another hike in December, three more next year, and one in 2020.

The Fed outlook is pressuring Asian currencies across the board, but not all countries need to tweak their policy. New