Rupiah Forwards Advance as Central Bank Seen Tackling Inflation
06 Mar 2013 08:24 GMT
 
Indonesia's rupiah forwards rose for a second day on speculation the central bank will take steps to rein in inflation after it accelerated to a 20-mo (more)

Indonesia's rupiah forwards rose for a second day on speculation the central bank will take steps to rein in inflation after it accelerated to a 20-month high in February. Government bonds advanced.

DBS Group Holdings Ltd. and PT Mandiri Sekuritas said in research notes they expect Bank Indonesia to raise its deposit facility rate, or Fasbi, in 2013 after consumer prices gained 5.31 percent last month from a year earlier. That compares with the monetary authority's 3.5 percent to 5.5 percent target range.

"Pressure for Bank Indonesia to act is starting to rise," said Eugene Leow, an economist at DBS in Singapore. "Inflation is already near the upper end of its target range, so once it breaches the upper limit, we expect the central bank to move to hike rates."


Sukuk.me Wire External StoryFrom Source: Bloomberg - Read full article here

Sukuk.me is not responsible for the content of external internet sites



--


© islamonline.com