Credit Suisse Cuts Indonesia 2015 Growth Forecast to 5%

        0242 GMT [Dow Jones] Credit Suisse trims its 2015 Indonesia GDP forecast to 5.0% from 5.2% in the wake of Bank Indonesia's decision to raise interest rates, a decision the central bank made following a government move to raise subsidized fuel prices this week. Credit Suisse cites softer investment growth and a weaker domestic demand outlook, with lower China growth also playing a role. It notes it's bearish relative to consensus forecasts of 5.6% growth for the year, "although we suspect this too will come down" once forecasters adjust to new fuel prices and the interest rate increase. "On the other hand, we have turned more constructive on the rupiah in the near term. We believe there was more monetary policy tightening than meets the eye in the recent central bank's move and the main purpose was to ensure currency stability going forward." It says the twin moves this week "should bias USD-IDR toward the lower end of its 12,000-12,200 range." (ben.otto@wsj.com; @benottoWSJ)
        (END) Dow Jones Newswires

        November 19, 2014 21:42 ET (02:42 GMT)

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