China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
Japan Signals Readiness to Act on Yen as Intervention Speculation Grows 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Asian Currencies Stay Under Pressure as Dollar Holds Near 13-Month High Ahead of U.S. Jobs Report 
Wall Street Ends Mixed as Weak Jobs Data Lowers Fed Rate Hike Bets, Chip Stocks Tumble 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Brazil to Phase Out Gasoline Subsidy First as Diesel Support Stays Longer 
The Bank Indonesia (BI) is expected to remain on hold throughout this year, closely peering through the rise in the country’s inflation.
Higher anticipated GDP growth (2017 forecast of 5.4 percent versus 2016 forecast of 5.0 percent) along with the phased removal of 900 VA electricity tariff subsidies will contribute significantly to the inflation climb in 2017.
Furthermore, potentially higher commodity prices in oil and food portend upside risks to tradable inflation. Although inflation is on a significantly higher glide path, it will still average within Bank Indonesia’s (BI) 3-5 percent year-end target.
Higher inflation will constrain policy space for the central bank to cut rates. On the flip side, BI is unlikely to hike rates in response to administered price adjustments.
"We maintain our view that BI will remain on hold throughout 2017," ANZ Research said in its latest research publication.
