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Asia Week Ahead: Bank Indonesia Decision, Japan Inflation, Korea GDP

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Several key economic releases are due across Asia this week, including central bank decisions, inflation data, gross domestic product figures and flash purchasing managers' index reports.

The week begins with China's benchmark lending rates on Monday, followed by Taiwan's June export orders on Tuesday.

Indonesia's central bank will announce its interest rate decision on Wednesday. On Thursday, South Korea will report second-quarter gross domestic product, and Singapore will publish June inflation figures.

The week wraps up with July flash PMI data from India and Japan on Friday. Japan will also release inflation numbers.

Here's what to watch in the week ahead.

MONDAY, July 20

The People's Bank of China left its benchmark lending rates unchanged for the 14th consecutive month, matching the consensus forecast tracked by Investing.com.

The one-year loan prime rate, which serves as the benchmark for most corporate and household loans, was held at 3%. Meanwhile, the five-year LPR, the reference rate for residential mortgages, was maintained at 3.5%.

Elsewhere, Malaysia's trade surplus narrowed to 14.9 billion ringgit in June from 39.9 billion ringgit in May.

Total exports grew 45.4% year over year to 177.9 billion ringgit, while imports rose 43.9% to a record 163 billion ringgit.

India's infrastructure output for June is also expected later today.

TUESDAY, July 21

Taiwan will report June export orders, with ING economists forecasting a 43.9% increase, slower than the 47.2% rise in May.

WEDNESDAY, July 22

Bank Indonesia is expected to hike rates by 25 basis points to 6%, according to a forecast by ING, adding that the increase underscores the central bank's commitment to foreign exchange stability by attracting foreign inflows and stabilizing the local currency.

The hike is anticipated to be the last of the cycle, according to DBS economists.

South Korea's producer prices are forecast to have risen 8.2% year over year in June, slowing from 8.5% in the previous month, according to Trading Economics.

Elsewhere, Japan may see a trade deficit of 120 billion yen in June, narrowing from the 378.7 billion yen recorded in May, according to consensus estimates.

Exports and imports are expected to climb 18.6% and 21% year over year, respectively.

THURSDAY, July 23

South Korea will release its Q2 GDP. ING said the economy likely grew 4.2% year over year in the April to June period, up from 3.8% in the first quarter, driven by positive net exports.

Singapore will publish inflation data for June, with ING economists forecasting core inflation at 1.7%, and Trading Economics at 1.6%. This compares to 1.4% in May.

FRIDAY, July 24

Japan will release inflation figures for June. Trading Economics expects the nation's core consumer price index, which excludes volatile fresh food prices, to be 1.5%, slightly higher than May's 1.4%.

Flash PMI reports for Japan and India are also due on Friday.

Lastly, Singapore will post industrial production numbers, with Trading Economics forecasting a 9% year-over-year boost in June, slowing from May's 13% growth.

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