{"text":[[{"start":8.2,"text":"Indonesia and the Philippines raised interest rates on Thursday, in some of the most aggressive policy tightening in Asia since the war in the Middle East began as the two countries look to shore up slumping currencies and curb inflation. "}],[{"start":20.5,"text":"Bank Indonesia raised its benchmark rate by 0.25 percentage points to 5.75 per cent, following an unexpected increase by the same amount last week. That brought the total rise in interest rates in south-east Asia’s largest economy to 1 percentage point in just four weeks."}],[{"start":38.1,"text":"The Bangko Sentral ng Pilipinas also raised rates by 0.25 percentage points, to 4.75 per cent, following a similar increase in April. The bank cited strong inflationary pressures from higher oil and fertiliser prices, which it said were driving up food prices. "}],[{"start":58.05,"text":"“I won’t say the worst is over [in terms of inflation],” said BSP governor Eli Remolona Jr, adding that the bank was prepared to raise rates further."}],[{"start":67.64999999999999,"text":"Remolona also said the deal recently struck between the US and Iran to extend a ceasefire and permit energy shipments to resume through the Strait of Hormuz would not immediately ease pressures on the economy."}],[{"start":79.49999999999999,"text":"“Even if the Strait of Hormuz is open today, we still need several months to rebuild the infrastructure before we can expect the price of oil to return to the levels before the conflict,” he said."}],[{"start":90.79999999999998,"text":"Indonesia and the Philippines are among the countries that have been hit hardest by the economic fallout of the war. Their currencies, the Indonesian rupiah and the Philippine peso, are among Asia’s worst-performing this year, with both trading near all-time lows against the dollar. "}],[{"start":107.24999999999999,"text":"In both countries, the oil shock has exacerbated domestic economic and fiscal problems."}],[{"start":113.44999999999999,"text":"In the Philippines, which imports 95 per cent of its oil from the Middle East, the central bank expects headline inflation to breach its 4 per cent tolerance ceiling this year and next. "}],[{"start":125.35,"text":"Soaring fuel prices have worsened the country’s macroeconomic outlook at the same time that a corruption scandal involving state funds has prompted the government to slow state spending, hampering growth. "}],[{"start":138.65,"text":"In Indonesia, President Prabowo Subianto has spooked investors by introducing expensive welfare schemes and imposing state control over the private sector, resulting in some of the biggest outflows of foreign funds in decades. "}],[{"start":153.05,"text":"Higher oil prices have prompted Indonesia to spend more on fuel subsidies. The government has vowed to maintain the subsidies despite fiscal pressures to shield Indonesians already struggling with declining purchasing power. "}],[{"start":167.55,"text":"Bank Indonesia governor Perry Warjiyo said Thursday’s rate increase was aimed at strengthening the rupiah and attracting foreign funds. "}],[{"start":176.3,"text":"Additional reporting by Diana Mariska"}],[{"start":187.3,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781778722_5343.mp3"}