Indonesia to hold key rate amid price pressures

JAKARTA (Bloomberg): Indonesia is expected to continue bucking the trend of monetary policy tightening although signs that the government may boost fuel prices could convince the central bank to signal a readiness to act to tame inflation.

Bank Indonesia will keep its seven-day reverse repurchase rate at 3.5% on Tuesday (Aug 23), according to 24 of 31 economists in a Bloomberg survey as of Monday. The rest expect an increase of 25 basis points.