A Wall Street Journal survey of 10 economists found nine expect Bank Indonesia
(BI) to keep the 7-day reverse repo rate at 5.75% on Wednesday; one expects a
25bp hike to 6.0%. HSBC economists say recent rupiah stability gives BI room to
stand pat at the September meeting, but oil, El Nifio and dollar moves pose
risks to inflation, the fiscal deficit and the trade balance and could weaken
the rupiah later this year. HSBC expects BI’s next hike in Q4, taking the policy
rate to 6.0%.
