LPEM COMMENTARY BI BOARD OF GOVERNORS’ MEETING APRIL 2017

With administered price hikes expected to drive inflation toward its 4% target, we maintain the view that Bank Indonesia should maintain the policy at 4.75% in Thursday meeting. Short-term external risks to Rupiah have been receding, owing to the fact that market participants have priced in Fed  rate hike and revised down the expected rate hikes to  just another one left in 2017, allowing Bank Indonesia to maintain focus on domestic price  level.

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