Bank Indonesia likely to keep policy unchanged

Despite significant market volatility, central banks elsewhere in Asia have yet to express serious alarm. 

Indonesia, with inflation running high, the central bank is ever-sensitive to a weaker currency, with Bank Indonesia governor Martowardojo stating that recent moves in the rupiah do not reflect its fundamental value. Next week, should market volatility persist, the focus is likely to remain on central bank communication. 

"Bank Indonesia is expected to keep policy on hold when it meets on Tuesday, but the statement is likely to express vigilance over the recent decline in the IDR, alongside the pickup in inflation", says Barclays.