Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Bank Indonesia (BI) is expected to keep rates unchanged at its monetary policy meeting on January 23, with monetary authorities closely monitoring the recent performance of the IDR, according to the latest research report from ING Economics.
Governor Warjiyo will be expected to reiterate his accommodative stance, with inflation well within target and growth momentum still sluggish amidst the global trade war.
The IDR had opened the year on a strong note, with foreign inflows sustained from last year. Foreign inflows were likely driven on hopes for swift delivery of the President's reform package - Jokowi has vowed to revamp labour laws while also lowering corporate taxes, the report added.
The recent emerging market sell-down, induced by concerns linked to the new strain of coronavirus, reminded monetary authorities that portfolio flows can reverse very quickly. The IDR is now under pressure with foreign players opting to stay defensive amidst the new health scare.
"With global growth only expected to post a modest recovery in 2020, we believe that the BI Governor will cut policy rates as early as the first quarter and when IDR exhibits more stability on financial account inflows," ING further commented in the report.
