Halister News

(Bloomberg) -- Bank Indonesia may cut benchmark rate again tomorrow if economists’ forecasts are anything to go by, Bloomberg strategist David Finnerty writes.

• Central bank will reduce reference rate by 25 bps, according to 15 of 24 economists in Bloomberg survey, with nine forecasting no change
• Policy makers may be emboldened to cut rates given that core inflation continues to decelerate, rupiah remains stable and China’s economy continues to slow
• Core consumer prices rose 3.59% in Feb., the least in data going back to 2014; headline CPI accelerated to 4.36% from 4.14%, but still remains within 2016 target of 3%-5% increase
• Central bank lowered benchmark rate by 25 bps for a second consecutive meeting last month
• Rupiah has advanced 4.7% this year, the second-best performance among Asia’s most-traded currencies, amid an increase in foreign holdings of local bonds and equities
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.