indonesia cb holds key rate steady
Last Updated : GMT 15:30:33
Arab Today, arab today
Arab Today, arab today

Indonesia CB holds key rate steady

Arab Today, arab today

Arab Today, arab today Indonesia CB holds key rate steady

Jakarta - Arabstoday

Indonesia’s central bank paused on Thursday after a series of rate cuts, and hinted at a shift in its policy stance on expectations that inflation will accelerate above its target in coming months due to a planned increase in fuel prices. The benchmark overnight rate was kept at a record low 5.75 per cent, after a surprise 25 basis points cut in February, as Bank Indonesia (BI) sees the inflationary impact from a fuel hike as temporary and still aims to support strong growth in Southeast Asia’s biggest economy. However the policy statement contrasted with BI’s previous focus on boosting the domestic economy when it saw headwinds from a slower global economy and easing local inflation. The rupiah edged lower after the decision to trade down 0.3 lower against the dollar on the day, as market players reacted to conflicting signals from BI and the government by cutting their exposure.  Some economists fear the fuel price move could cause inflation to run out of control and force BI into a policy U-turn, though others see BI now sitting on its hands through 2012.  “We expect Bank Indonesia to stay on hold for the rest of the year, given heightened inflation risks. Bias is towards a possible tightening in the second half, if inflation overshoots,” said Chua Hak Bin, economist at Bank of America Merrill Lynch in Singapore.  “In such a scenario, we expect BI to tighten via liquidity measures such as raising reserve requirements, narrowing the rate corridor, rather than via policy rate hikes as the first course of action,” he added.  All 14 economists polled by Reuters before the rate decision had expected no change. Three out of 10 economists expected BI to raise its policy rate to as much as 6.25 per cent by the end of this year to tame inflation, while four forecast a rate hold.  Inflation surprisingly slowed further in February to a 22-month low of 3.56 per cent, but the government expected price pressures to intensify in the second quarter as it planned to hike subsidised fuel price by at least a third to ease the pressure on state coffers. Indonesia’s finance ministry raised its 2012 inflation forecast to 7 per cent in the proposed budget revision submitted to parliament on Wednesday, from 5.3 per cent.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

indonesia cb holds key rate steady indonesia cb holds key rate steady

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

indonesia cb holds key rate steady indonesia cb holds key rate steady

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday