Week Ahead for FX, Bonds: U.S., European PMI Data -2-

Currency stability could give Bank Indonesia room to hold interest rates steady, though inflation risks may limit how long it can remain on pause.

ING economists Deepali Bhargava and Lynn Song expect the central bank to leave rates unchanged, citing recent exchange-rate stability.

Improving sentiment has eased immediate pressure on policymakers to raise rates, but the underlying balance-of-payments position remains largely unchanged, they said.

Higher fuel prices and a severe El Nino could add to domestic inflation pressures. ING continues to expect another 25-basis-point rate increase before year-end.

Philippines

The Philippine central bank also faces a difficult balance between inflation risks and subdued growth when it meets Thursday.

Goldman Sachs economists expect Bangko Sentral ng Pilipinas to raise its policy rate by 25 basis points to 5.25%.

Inflation accelerated in September to its fastest pace since April. Elevated global oil prices remain a threat to the outlook, given the country's heavy reliance on supplies from the Middle East.

Broadening price pressures and peso weakness warrant further tightening despite muted economic growth, Goldman Sachs said.

The BSP raised rates for a third consecutive time in August to guard against inflation risks from a severe El Nino and larger-than-expected wage increases.

Malaysia

Malaysia's September inflation and trade figures will help investors assess the case for tighter policy, with price pressures relatively mild but economic growth resilient.

Headline inflation could edge up to 2.0% from 1.9% in August, driven by higher prices for unsubsidized fuels, ANZ economist Sanjay Mathur said. Core inflation is expected to remain at 1.7%, reflecting limited domestic price pressures.

Despite benign inflation, ANZ expects Bank Negara Malaysia to raise its policy rate by 25 basis points next month, supported by robust growth and tighter global financial conditions.

Exports are expected to rise 45% from a year earlier, supported by strong demand for electrical and electronics products and resilient oil and gas shipments, DBS economists Taimur Baig and Radhika Rao said. A high year-earlier comparison base is likely to limit further acceleration, they added.

Singapore

Singapore rounds out the week with September inflation figures on Friday, with both headline and core price growth expected to pick up.

DBS forecasts core inflation of 2.3% and headline inflation of 2.4% from a year earlier, up from 2.2% and 2.3%, respectively, in August.

The bank expects price pressures to reflect higher global energy costs feeding through to services sensitive to fuel prices, as well as firmer food inflation.

Any references to days are in local times.

Write to Jessica Fleetham at jessica.fleetham@wsj.com and Jihye Lee at jihye.lee@wsj.com

(END) Dow Jones Newswires

October 16, 2026 09:26 ET (13:26 GMT)