FOREX TradingCharts.com

Financial News: Bank Indonesia Unlikely To Cut Rates This Year:

Bank Indonesia Unlikely To Cut Rates This Year: Capital Economics

04/21/2017 - 08:09:00 (RTTNews)

(RTTNews) - Indonesia's central bank is unlikely to cut interest rates over the coming months of 2017, despite a relatively poor growth outlook, Gareth Leather, an economist at Capital Economics, said.

Bank Indonesia on Thursday retained the key interest rate at 4.75 percent for the sixth consecutive month in April, as economists had widely expected.

"With inflation set to rise over the coming months and the rupiah vulnerable to sudden shifts in investor risk appetite, we expect rates will be left on hold for the remainder of the year," Leather said.

"The economy could certainly do with some further support from the central bank".

Although the CPI inflation eased slightly to 3.6 percent in March from 3.8 percent in February, it is likely to rise further in the coming months due to an increase in administered energy prices.

That said, Bank Indonesia described the 3-5 percent inflation target as 'achievable'.

Another worry for the bank is rupiah that has performed relatively well so far in 2017, but which could slump on the back of aggressive rate hikes by the US Fed, the economist said.

"Indonesia's relatively high level of foreign-currency denominated debt makes it vulnerable to big falls in the rupiah," Leather added.

The victory of Anies Baswedan, who he has strong links with President Joko Widodo's main political opponents, in Jakarta's mayoral election has raised fears that fringe Islamist groups could play a key role in influencing Indonesian politics over the coming years, the economist noted.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Consumer Sentiment Nearly Unchanged In April (09 hr(s), 02 min(s), 16 sec(s) ago)
(RTTNews) - After initially reporting an improvement in U.S. consumer sentiment in the month of Ap ...Full Story»

Chicago Business Barometer Unexpectedly Indicates Faster Growth In April (09 hr(s), 22 min(s), 16 sec(s) ago)
(RTTNews) - A report released by MNI Indicators on Friday showed an unexpected acceleration in the ...Full Story»

Eurozone Inflation Climbs To ECB Target (09 hr(s), 47 min(s), 16 sec(s) ago)
(RTTNews) - Eurozone inflation accelerated more-than-expected in April, returning within the Europ ...Full Story»

U.S. Economic Growth Slows More Than Expected In Q1 (10 hr(s), 27 min(s), 16 sec(s) ago)
(RTTNews) - Economic growth in the U.S. slowed by more than anticipated in the first three months ...Full Story»

ECB Forecasters Revise Up Growth & Inflation Expectations (10 hr(s), 43 min(s), 16 sec(s) ago)
(RTTNews) - Professional forecasters expect euro area consumer prices to rise faster than earlier ...Full Story»

UK Growth At 1-Year Low As 'Brexit' Weighs On Spending (10 hr(s), 53 min(s), 16 sec(s) ago)
(RTTNews) - The U.K. economy expanded the least in a year at the start of 2017, reflecting a notab ...Full Story»

U.S. GDP Increases Less Than Expected In Q1 (11 hr(s), 0 min(s),16 sec(s) ago)
(RTTNews) - Economic growth in the U.S. slowed by more than anticipated in the first three months ...Full Story»

Sweden Retail Sales Growth Eases Unexpectedly (11 hr(s), 20 min(s), 16 sec(s) ago)
(RTTNews) - Sweden's retail sales growth eased unexpectedly in March, after accelerating in th ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Nearly Unchanged In April

04/28/2017 - 10:35 AM (RTTNews)
(RTTNews) - After initially reporting an improvement in U.S. consumer sentiment in the month of Ap ...Full Story>>

Chicago Business Barometer Unexpectedly Indicates Faster Growth In April

04/28/2017 - 10:15 AM (RTTNews)
(RTTNews) - A report released by MNI Indicators on Friday showed an unexpected acceleration in the ...Full Story>>

Eurozone Inflation Climbs To ECB Target

04/28/2017 - 09:50 AM (RTTNews)
(RTTNews) - Eurozone inflation accelerated more-than-expected in April, returning within the Europ ...Full Story>>

U.S. Economic Growth Slows More Than Expected In Q1

04/28/2017 - 09:10 AM (RTTNews)
(RTTNews) - Economic growth in the U.S. slowed by more than anticipated in the first three months ...Full Story>>

ECB Forecasters Revise Up Growth & Inflation Expectations

04/28/2017 - 08:54 AM (RTTNews)
(RTTNews) - Professional forecasters expect euro area consumer prices to rise faster than earlier ...Full Story>>
These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.