BOJ Rate Hike Expectations Rise Ahead of September Meeting 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Bank Indonesia (BI) cut its policy rate by 25bp to 7.25% on 14 January, as widely expected. Earlier markets expected BI to cut in February, given the governor's recent concern over financial volatility. But renewed downward pressure on oil prices was likely a tipping point for bringing forward the easing.
Growth stimulus and currency stability concerns had characterized BI policy since October 2015. The USD3.5bn sovereign debt issue in December and almost USD10bn of commitments from Chinese investors since September 2015 for infrastructure projects have put to rest some of the concerns. The governor's dovish comments suggest a second cut in the easing cycle is likely soon.
"We expect another rate cut in March. With inflation stabilizing lower in 2016 at 4.2%, we also see scope for further monetary easing beyond March," notes Barclays in a research note.
