Indonesia's central bank may raise key rates by 25 basis points on Wednesday

what happened

Indonesia's central bank will conclude its monetary policy meeting on Wednesday and then announce its interest rate decision. TradingView reports this, citing RTTNews and dpa-AFX. The bank is expected to raise its benchmark lending rate, deposit facility rate and lending facility rate by 25 basis points each, to 6.00%, 5.00% and 6.75% respectively.

The Asia-Pacific session is expected to be quiet. Japan will publish September data on imports, exports and the trade balance. Imports are forecast to rise 19.6% from a year earlier, down from 28.0% in August. Exports are seen up 20.1% year on year, after 19.3% the previous month. The trade balance is pegged at 181.0 billion, following a deficit of 1,111.9 billion a month earlier.

New Zealand will also release September credit card spending data. Spending rose 3.5% year on year in August.

why it matters

The Indonesian decision matters for the rupiah and local bond markets. A rate increase typically supports the national currency and makes local debt more attractive, and investors in emerging Asian markets watch such signals closely. Japan's trade figures will show how external demand is developing in the region.

market impact

Rupiah and Indonesian bonds: tighter monetary policy may support the currency and draw demand to local debt

tags

instruments