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11 Mar 2014
Flash: Bank Indonesia to keep rates steady - BBH
FXStreet (Bali) - Bank Indonesia meets Thursday and is expected to keep rates steady at 7.5%, notes Marc Chandler, Global Head of Currency Strategy at BBH.
Key Quotes
"Price pressures continue to ease, as February CPI came in at 7.75% y/y vs. expected 7.94% y/y and 8.22% in January. Bank Indonesia may not have to hike any more, after it delivered several hawkish surprises last year and regained market confidence in the rupiah."
"Indeed, IDR is the top EM performer, up 7% YTD vs. USD. Last move was a 25 bp hike to 7.5% in November. USD/IDR broke below support near 11500. 11345 is the 62% retracement objective of the October-December rise, and break would target the October low near 10765. Support seen near 11000, while resistance seen near 11750 and then 12000."
Key Quotes
"Price pressures continue to ease, as February CPI came in at 7.75% y/y vs. expected 7.94% y/y and 8.22% in January. Bank Indonesia may not have to hike any more, after it delivered several hawkish surprises last year and regained market confidence in the rupiah."
"Indeed, IDR is the top EM performer, up 7% YTD vs. USD. Last move was a 25 bp hike to 7.5% in November. USD/IDR broke below support near 11500. 11345 is the 62% retracement objective of the October-December rise, and break would target the October low near 10765. Support seen near 11000, while resistance seen near 11750 and then 12000."