Barclays Sees BI Unlikely to Raise Rates Today; Stronger IDR

        0548 GMT [Dow Jones] Barclays doesn't expect Bank Indonesia to raise rates in an extraordinary meeting today, called after Indonesian President Joko Widodo raised the price of subsidized fuels by about a third late last night. Instead, "BI will likely emphasize that it is watching the pass-through of the hike to inflation expectations closely, and that it is ready to act if necessary," the bank writes in a research note. Barclays instead expects BI to raise rates once in Q1 2015 and again in Q3 2015, taking the policy rate to 8.00% from a current high of 7.50%, with inflation likely increasing from less than 5% y-o-y currently to an average of 6.2% in 2015. Barclays adds that in the "near term" the fuel increases are likely to boost the IDR, in part because it will increase investor confidence in Widodo and his ability to push through economic reforms in Southeast Asia's largest economy, helping sustain foreign portfolio flows into the local market. (ben.otto@wsj.com; Twitter: @benottoWSJ)
        (END) Dow Jones Newswires

        November 18, 2014 00:48 ET (05:48 GMT)

#BankIndonesia
#BI
#IDR
#Kurs