Asia Economics Update Bank Indonesia's pause will be short-lived Bank Indonesia (BI) paused the tightening initiated last month, leaving the reference rate unchanged at 6.75%. But today’s pause will probably be brief, given that underlying growth has remained... 4th March 2011 · 1 min read
Asia Economic Outlook Set for above-trend growth GDP growth across Emerging Asia has slowed, but is likely to pick up again soon. Domestic demand, trade between the emerging markets, as well as policy flexibility, will cushion the downside... 22nd February 2011 · 1 min read
Asia Economics Update Indonesia's upswing set to stay in good shape Q4 GDP data for Indonesia, published today, were stronger than expected. The upswing will almost certainly remain impressive, with domestic demand leading the way. Government bonds will continue to... 7th February 2011 · 1 min read
Asia Economics Update Bank Indonesia makes the right move Bank Indonesia today hiked its reference rate by 25bp to 6.75%. This is what we expected would happen, but was a surprise to the consensus. More hikes are on the way, and soon. We continue to... 4th February 2011 · 1 min read
Asia Economics Weekly Bank Indonesia likely to hike this week It is a close call but we still expect Indonesia’s central bank (BI) to finally lift its policy rate this week, by 25bp to 6.75%. The economic upswing should stay in good shape, while macro prudential... 31st January 2011 · 1 min read
Asia Economics Update Indonesia continues to manage capital inflows Indonesia has introduced more macro prudential measures to regulate the foreign liabilities of the banking sector. This is a sound strategy which will limit the extent to which any sudden change in... 6th January 2011 · 1 min read
Asia Economics Update The first Indonesia rate hike looks close Bank Indonesia (BI) left its reference rate unchanged today at 6.5%, as was universally expected. Nevertheless, the reference rate is now negative in real terms while inflation will probably... 5th January 2011 · 1 min read
Asia Economics Update A policy rate hike by Bank Indonesia looks close Bank Indonesia (BI) kept its reference rate unchanged today at 6.5%. The no-change outcome was not a surprise but we suspect that the decision was finely-balanced. Inflation is picking up fast while... 3rd December 2010 · 1 min read
Asia Economic Outlook Asia's slowdown to bottom soon (Q4 10) The post-recession rebound in most of Latin America is showing signs of slowing but growth is likely to remain fairly strong over the coming quarters. We still expect the region to expand by around 4... 1st December 2010 · 1 min read
Asia Economics Update Indonesia's upswing remains in good shape Data published today show that Indonesia’s GDP growth eased to 5.8% y/y in Q3. The slowdown is due to one-off factors and is not a cause for concern. Economic growth will stay strong in coming... 5th November 2010 · 1 min read
Asia Economics Update Bank Indonesia will probably hike rates soon It was no surprise that Bank Indonesia (BI) today left the repo rate unchanged at 6.5%. But BI has become more hawkish on the outlook for inflation despite the prospect that the rupiah will appreciate... 4th November 2010 · 1 min read
Asia Economics Update Bank Indonesia on hold but not for much longer As expected, Bank Indonesia (BI) today held the policy rate steady at 6.5%. Monetary conditions have actually tightened in recent months given that rupiah appreciation has more than offset the fall in... 5th October 2010 · 1 min read
Asia Economics Weekly Indonesia to bide its time on policy rate hikes Bank Indonesia (BI) is almost certain to keep its reference rate at 6.5% on Tuesday. GDP growth remains strong but the economy is expanding close to its trend rate of 6% pa rather than at a faster... 4th October 2010 · 1 min read
Asia Economic Outlook Asia is re-balancing and will continue to lead (Q3 10) The global upswing is now regaining some traction and the threat of renewed financial crisis has diminished. However, the world recovery will stay weak and vulnerable to other risks such as deflation... 23rd September 2010 · 1 min read
Asia Economics Update Indonesia steps up its policy tightening Bank Indonesia (BI) left its policy rate at 6.5% today, as expected. However, it also announced that the reserve requirement will rise from 5% to 8%, starting from the beginning of November. The... 3rd September 2010 · 1 min read
Asia Economics Update Investment grade looks close for Indonesia The consensus expects that Indonesia will achieve investment grade over the next one-to-three years but we believe that an upgrade by one of the three major ratings agencies will probably happen over... 31st August 2010 · 1 min read
