Fed Expected to Hike Rates One Last Time Amid Global Inflation Pressures

The Federal Reserve is expected to raise interest rates one final time in the fourth quarter of this year, according to Bank Indonesia Governor Destry Damayanti.

This decision follows the US central bank's recent 25 basis point rate hike on September 16, which brought the benchmark rate to a range of 3.75 to 4.00 percent.

Persistent global inflationary pressures, fueled by surging energy commodity prices and international conflicts in the Middle East, are driving this monetary tightening, Damayanti said.

The high-interest-rate environment in the US continues to bolster the US dollar against global currencies, triggering capital outflows from emerging markets toward developed economies, she added.