Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
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.
