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Does turmoil in Indonesia lift or lower chances of a rate cut?

Bank Indonesia will meet next week under the cloud of recent protests and the sacking of respected Finance Minister Sri Mulyani Indrawati. We expect officials to hold fire from further easing, not least given that fiscal loosening appears to be on the cards. A third consecutive rate cut would merely add to concerns around the central bank’s independence and undermine attempts to support the rupiah.  

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