Halister News

(Bloomberg) -- Further acceleration in Indonesia’s CPI inflation in October could damp prospects for more rate cuts, dragging USD/IDR lower, Bloomberg strategist Andrew Robinson writes.

• Consumer prices probably rose 3.30% y/y following 3.07% gain in September, median est. in Bloomberg survey shows; ests. range from 3.02% to 3.41%; data due today, no time specified
  • Another month of faster inflation may suggest that prices have bottomed out near term after reaching a record low of 2.79% in August
• USD/IDR closed little changed at 13,048 yesterday
  • 50-DMA at 13,093; pair has not traded above it since Sept. 21
• BI last cut 7-day reverse repo rate to 4.75% from 5.00% on Oct. 20; next meeting scheduled for Nov. 16
  • Latest Bloomberg survey shows BI will probably maintain 7-day reverse repo rate steady at 4.75% through 2017
• NOTE: Goldman expects faster headline inflation in October, citing in part, unfavorable base effects, according to a note dated Oct. 28
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice