Indonesia:BI resumes easing,more to come

　　After pausing in April and May, Bank Indonesia (BI) today resumed its easingcycle, cutting its reference rate and 7-day reverse repo rate (RRP) by 25bps to6.50% and 5.25% respectively. Following a surprisingly dovish stance in May, wehad expected today's cut, although the majority of economists polled byBloomberg had expected a pause. In an earlier-than-expected move, BI also liftedbanks' loan-to-funding ratio to 80% from 78%. The central bank continues to sounddovish, cementing our view that a further 25bp rate cut will be delivered in 3Q16.As mooted earlier by BI, further macroprudential easing is also on the cards, in theform of lower downpayments for car and motorcycle purchases.