BANKS | Survey Shows Bank Indonesia May Raise Policy Rate

According to a Wall Street Journal survey, six of nine economists expect Bank Indonesia to raise its benchmark seven-day reverse repo rate by 25 basis points to 6.0% on Wednesday. The other three economists expect Bank Indonesia to keep the policy rate unchanged. According to Jin10, HSBC economists said in a report that Bank Indonesia has implemented a series of rate hikes and liquidity measures to support the country's economy, and added that while these measures have helped attract some capital inflows, the rupiah remains under pressure as oil prices rise, which provides a reason for another rate hike.