Bank Indonesia (BI) left rates at 6.50% today, as expected. The economic upswing will stay strong but the high level of the rupiah is helping to hold down prices. Nevertheless, inflation will probably accelerate sharply in the second half of 2010 and we expect that monetary tightening will start in September. Government bond prices have little upside from here but the rupiah should climb further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services