U.S. Rate Cut Boosts Southeast Asia

This is a Indonesia news story, published by CNBC, that relates primarily to Fed news.

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Bank Indonesia

CNBC

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Federal Reserve rate cuts could prove to be a boon for Southeast Asian economies

Summary

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89% Informative

Higher rates in the U.S. have traditionally been a negative for emerging markets.

But on the flipside, it can boost emerging markets who see renewed flows into their economies.

Both Indonesia 's rupiah and Thailand 's baht currencies strengthened against the dollar following the Fed 's decision.

The central banks of both Indonesia and Thailand are attempting to maneuver themselves.

The Bank of Thailand duly obliged, announcing a surprise cut for the first time in four years on Oct. 16 . In a report published in September , American credit rating agency Fitch Ratings said it expects the Fed to make four cuts through 2025 . And U.S. central bank is still expected to make another reduction before the end of the year . As for ASEAN , central banks look likely to be in step with the Fed . Sumual believes both Bank Indonesia and Bank of Thailand will "follow suit," further benefiting ASEAN 's emerging market portfolio assets..