Indonesian Stocks Rally to Slow, Citigroup Says
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A rally that helped Indonesian stocks enter a bull market may slow this quarter as faster inflation spurs concern the central bank will raise borrowing costs, according to Citigroup Inc.
The Jakarta Composite index has climbed 18 percent this year, the best performer among Asia’s 10 biggest markets, as record-low interest rates accelerated growth in Southeast Asia’s largest economy and boosted earnings. Bank Indonesia kept its main interest rate unchanged for a 12th month today, even as inflation accelerated at its quickest pace in 15 months.