Indonesia’s central bank is expected to hit the pause button






After almost two years of negotiations and escalations, trade negotiators from the U.S. and China are making progress in key areas even as concerns grow that efforts to nail down the first phase of a broader deal are stalling. Some people close to the talks described them as being in a sensitive, make-or-break stage and caution that what President Donald Trump proclaimed as a done deal a month ago, sending U.S. stocks soaring to records, could still easily fall apart. (Bloomberg)

Indonesia’s central bank is expected to hit the pause button after four straight interest-rate cuts, as policymakers use additional instruments to help stoke growth in Southeast Asia’s largest economy. With the U.S. Federal Reserve expected to be on a prolonged hold after three rate cuts this year, central banks in emerging markets are getting some breathing space. Twenty-one of the 31 economists surveyed by Bloomberg predict Bank Indonesia will leave its key rate unchanged at 5% on Thursday, while the rest forecast a 25 basis-point cut. (Bloomberg)

Source: Danareksa Sekuritas Debt Research