*

China leaves benchmark lending rates unchanged, as

expected

*

Indonesia c.bank stands pat on rates, focus on rupiah

stability

*

South Africa consumer inflation rises in Feb

By Ankika Biswas

March 20 (Reuters) - Emerging market assets were

listless on Wednesday as investors stayed on the sideline ahead

of central bank policy decisions including the Federal Reserve,

while Pakistan's dollar bonds gained on the IMF's provisional

agreement to disburse $1.1 billion.

The MSCI index for stocks edged up 0.1% by 5:30

a.m. ET (0930 GMT) after dropping nearly 1% on Tuesday, while

the currencies gauge slipped 0.1%, set for its

seventh straight day of decline.

The world's most influential central bank, the U.S. Fed, is

widely expected to keep rates steady later in the day, but their

new economic projections could potentially signal later and

fewer cuts than previously estimated.

Among others, China left benchmark lending rates unchanged

at a monthly fixing, in line with expectations. Indonesia, too,

kept key rates steady as forecasted, and reaffirmed that

monetary policy could be eased in the second half of the year.

China's blue-chip CSI300 and Shanghai Composite

indexes advanced 0.2% and 0.6%, with Tencent Music

Entertainment Group's ( TME ) Hong Kong shares jumping 11%

following a fourth-quarter revenue beat. The Indonesian rupee

was unchanged against the greenback.

"China will continue to let fiscal policy do the heavy

lifting for the economy, while the monetary policy will play a

more supporting role," said Kelvin Lam, senior economist at

Pantheon Macroeconomics.

"The first Fed rate cut is now delayed to June amid stronger

inflation dynamics, suggesting there is probably less

manoeuvring room for the PBoC to cut rates beforehand as RMB

stability remains foremost priority."

The International Monetary Fund said it reached a staff

level agreement with Pakistan, which if approved, will disburse

$1.1 billion for the indebted South Asian economy also saddled

with a balance of payment crisis.

The 2027-maturing bond was up at 84.336

cents on the dollar, while the 2025 bond rose

to 92.466 cents on the dollar.

On the economic data front, South Africa's consumer

inflation rose for the second month in February to 5.6% annually

from 5.3% in January. The rand was down 0.2% against the

dollar.

"The larger-than-expected rise in headline inflation rate

means that the SARB is likely to delay the start of its easing

cycle until after May's election," David Omojomolo, an

Africa-focused economist with Capital Economics wrote.

The Czech central bank will announce its policy decision

later in the day, expected to deliver a 50-basis-point rate cut.

The crown, which has taken a hit this year along with

the Hungarian forint on continued rate cuts, was flat

against the euro.

Data showed Polish corporate sector wages rose by an annual

12.9% in February, above forecast, while another set showed

producer prices (PPI) fell 10.1% annually in February, below

forecast. The zloty slipped 0.2% against the euro.

Later in the day, Brazil is expected to detail its policy

decision, expected to cut rate by 50 bps. Mexico and Colombia's

policy decisions are also due this week.

HIGHLIGHTS:

** Colombia government asks congress to approve up to $17.6

bln in debt

** Turkey's President Tayyip Erdogan to speak at election

rallies in Isparta, Burdur