Indonesia's Central Bank Likely to Stand Pat, WSJ Poll Shows
Dow Jones10-20 13:08
0508 GMT - Bank Indonesia is expected to keep its benchmark seven-day reverse repo rate steady at 5.75% on Wednesday, according to seven out of nine economists polled by The Wall Street Journal. Two economists forecast that BI will raise the policy rate by 25 basis points to 6.0%. Economic growth remains resilient and inflation is within BI's target range, but the rupiah has weakened amid broad U.S. dollar strength, HSBC economists say in a note. Narrowing yield differentials could also weigh on foreign portfolio inflows. BI may use other tools, such as Bank Indonesia rupiah securities, to support the currency before raising rates, they say. A 25 bps hike is expected later this year, but not at the October meeting, HSBC adds.
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