18 Aug 2015
Bank of Indonesia expected to keep policy ‘on hold’ – TDS
FXStreet (Edinburgh) - Strategists at TD Securities see the Bank of Indonesia keeping its monetary stance unchanged at today’s meeting.
Key Quotes
“The market expectation is adamant with a hold across the board. We agree with this view, but continue to see rate hikes in store for later this year”.
“The variable to track is not even inflation anymore, but the rupiah performance that continues to drive onshore funding concerns, and obviously also has inflationary implications”.
“Since last meeting, the picture is roughly the same. So until we see more idiosyncratic forces behind USDIDR moves, or the September FOMC triggers the market turmoil that we fear, we should continue to expect BI to stay in wait and see mode”.
Key Quotes
“The market expectation is adamant with a hold across the board. We agree with this view, but continue to see rate hikes in store for later this year”.
“The variable to track is not even inflation anymore, but the rupiah performance that continues to drive onshore funding concerns, and obviously also has inflationary implications”.
“Since last meeting, the picture is roughly the same. So until we see more idiosyncratic forces behind USDIDR moves, or the September FOMC triggers the market turmoil that we fear, we should continue to expect BI to stay in wait and see mode”.