Asia Economics Weekly Bank Indonesia to bide its time, but not for long We have changed our forecast that Bank Indonesia (BI) will raise its policy rate on Thursday and now believe that the reference rate will be held at 6.75%. This is because headline inflation continues... 6th June 2011 · 1 min read
Asia Economics Update Bank Indonesia policy rates to rise soon Today’s decision by Bank Indonesia (BI) to hold its reference rate steady at 6.75% was anticipated given recent downside surprises in headline inflation. However, core inflation continues to climb... 12th May 2011 · 1 min read
Asia Economics Update Indonesia set for strong growth this year Today’s Q1 GDP data were slightly weaker than the consensus had expected, but underlying growth momentum remains resilient. We still believe that price pressures rather than any concern over growth... 5th May 2011 · 1 min read
Asia Economics Update Bank Indonesia to resume rate hikes soon Bank Indonesia (BI) left its reference rate at 6.75% today, as was universally expected. Nonetheless, inflation remains uncomfortably high while the economy is set to grow at an above-trend pace in... 12th April 2011 · 1 min read
Asia Economics Weekly India and Indonesia central banks will continue to hike Mostcentral banks across the region will continue tightening policy settings thisyear, although the pace of policy normalisation will vary between countries. Wecompare the policy outlook for the... 28th March 2011 · 1 min read
Asia Economics Update Bank Indonesia's pause will be short-lived Bank Indonesia (BI) paused the tightening initiated last month, leaving the reference rate unchanged at 6.75%. But today’s pause will probably be brief, given that underlying growth has remained... 4th March 2011 · 1 min read
Asia Economic Outlook Set for above-trend growth GDP growth across Emerging Asia has slowed, but is likely to pick up again soon. Domestic demand, trade between the emerging markets, as well as policy flexibility, will cushion the downside... 22nd February 2011 · 1 min read
Asia Economics Update Indonesia's upswing set to stay in good shape Q4 GDP data for Indonesia, published today, were stronger than expected. The upswing will almost certainly remain impressive, with domestic demand leading the way. Government bonds will continue to... 7th February 2011 · 1 min read
Asia Economics Update Bank Indonesia makes the right move Bank Indonesia today hiked its reference rate by 25bp to 6.75%. This is what we expected would happen, but was a surprise to the consensus. More hikes are on the way, and soon. We continue to... 4th February 2011 · 1 min read
Asia Economics Weekly Bank Indonesia likely to hike this week It is a close call but we still expect Indonesia’s central bank (BI) to finally lift its policy rate this week, by 25bp to 6.75%. The economic upswing should stay in good shape, while macro prudential... 31st January 2011 · 1 min read
Asia Economics Update Indonesia continues to manage capital inflows Indonesia has introduced more macro prudential measures to regulate the foreign liabilities of the banking sector. This is a sound strategy which will limit the extent to which any sudden change in... 6th January 2011 · 1 min read
Asia Economics Update The first Indonesia rate hike looks close Bank Indonesia (BI) left its reference rate unchanged today at 6.5%, as was universally expected. Nevertheless, the reference rate is now negative in real terms while inflation will probably... 5th January 2011 · 1 min read
Asia Economics Update A policy rate hike by Bank Indonesia looks close Bank Indonesia (BI) kept its reference rate unchanged today at 6.5%. The no-change outcome was not a surprise but we suspect that the decision was finely-balanced. Inflation is picking up fast while... 3rd December 2010 · 1 min read
Asia Economic Outlook Asia's slowdown to bottom soon (Q4 10) The post-recession rebound in most of Latin America is showing signs of slowing but growth is likely to remain fairly strong over the coming quarters. We still expect the region to expand by around 4... 1st December 2010 · 1 min read
Asia Economics Update Indonesia's upswing remains in good shape Data published today show that Indonesia’s GDP growth eased to 5.8% y/y in Q3. The slowdown is due to one-off factors and is not a cause for concern. Economic growth will stay strong in coming... 5th November 2010 · 1 min read
Asia Economics Update Bank Indonesia will probably hike rates soon It was no surprise that Bank Indonesia (BI) today left the repo rate unchanged at 6.5%. But BI has become more hawkish on the outlook for inflation despite the prospect that the rupiah will appreciate... 4th November 2010 · 1 min read
