The Central Bank (Bank Indonesia/BI) expects the Federal Reserve to raise its Fed Funds Rate by 25 basis points at the coming Federal Open Market Committee (FOMC) meeting (14-15 March 2017). This move should put some temporary pressure on the Indonesian rupiah (as Indonesia will most likely see capital outflows) and therefore BI sees few to no room for additional monetary easing in Indonesia in the remainder of this year.To subscribe please click here
