Quotes from Scotiabank:- Indonesia will release inflation data for December on January 1st (EST). We estimate that consumer price inflation stood at 6.3% y/y, compared with the 6.2% rate recorded a month earlier. Inflation had eased to below 5% y/y in the third quarter of 2014, but picked up again in November following a fuel subsidy reduction announced on November 17th that increased the average price of fuel by 33%. – In order to anchor inflation expectations and to ensure that consumer price gains will be within the official target of 4% ±1% in 2015, Bank Indonesia tightened monetary conditions following an unscheduled policy meeting on November 18th. The benchmark interest rate was raised by 25 basis points to 7.75%. – Given the already-tight monetary policy stance, we do not anticipate any further interest rate hikes in the near term barring deterioration in global investor sentiment that would require intervention by the central bank.
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