Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September 
Asian Currencies Trade Sideways as Dollar Stabilizes, Yen Weakens Ahead of Japan Election 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
U.S. Stock Futures Edge Lower as Tech and AI Stocks Drag Wall Street Ahead of Key Earnings 
U.S. Stock Futures Rise as Investors Eye Big Tech Earnings and AI Momentum 
Japan Finance Minister Defends PM Takaichi’s Remarks on Weak Yen Benefits 
India Services Sector Rebounds in January as New Business Gains Momentum: HSBC PMI Shows Growth 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
The Bank Indonesia (BI) maintains a prudent policy stance in the wake of rising expectations of economic recovery. The gross domestic product (GDP) growth momentum is expected to pick up at a gradual pace in the coming months. Also, latest trade data continued to paint an improved outlook for the economy, particularly with the trade data suggesting that import growth has bottomed out, reported DBS Bank in its research note.
Loan growth has ticked up to 8.5 percent y/y in November last year and it is likely to continue rise even in 2017. Inflation is also creeping up higher. CPI inflation is likely to have ticked up to 3.2 percent y/y in the first month of 2017. Also, inflation expectations have gone up alongside the proposed revision in electricity prices while food prices have also been trending higher, they added.
Moreover, the DBS bank in its research note raised its CPI forecast to around average 4.5 percent for 2017, up from 3.5 percent last year. Additionally, as also indicated in the latest statement, Bank Indonesia is closely watching developments in the US and China. Given the need to avoid excessive market volatility, external policy risks matter.
Lastly, the DBS added unless there is a fewer than expected rate hike from the US Fed, it is unlikely that Bank Indonesia will cut its key policy rate further even if the central bank were to maintain an accommodative bias.
