Wednesday July 1, 07:53 AM
INSTANT VIEW 1-Indonesia June inflation at 3.65 pct y/y
JAKARTA, July 1 (Reuters) - KEY POINTS:
- June CPI up 3.65 pct on year earlier, less than expected.
- A Reuters poll forecast June CPI up 3.8 percent on year
- Annual inflation at lowest level since June 2000.
- Lower inflation gives c.bank room to cut rates - analysts
- C.bank seen cutting rates 25 bps to 6.75 pct on Friday.
MARKET REACTION:
- The rupiah was little changed at 10,200 per dollar at 0633 GMT after the data announcement.
- Bond prices were also steady, while the Indonesia Composite Index remained up about 1 percent at 0633 GMT after the announcement.
LINKS:
- For more data, Indonesia's statistics bureau Web site is: http://www.bps.go.id.
- For a breakdown of consumer price inflation, please click on
BACKGROUND:
- Analysts in a Reuters poll forecast the central bank would slash its overnight policy rate by 25 basis points to a record low of 6.75 percent on Friday.
- Bank Indonesia Deputy Governor Hartadi Sarwono said on Monday there was room to cut rates again.
- The central bank has forecast growth in Southeast Asia's biggest economy will slow sharply this year to 3-4 percent from 6.1 percent last year as it feels the effects of the global economic slowdown.
LINKS:
- Indonesia's statistics bureau:......http://www.bps.go.id
- CPI (NYSE: CPY - news) breakdown...................................
- Stories on Indonesia's economy...........
- Stories on Indonesia's central bank......
(Reporting by Adriana Nina Kusuma; Writing by Dicky Kristanto; Editing by Ed Davies)
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