EMERGING MARKETS-FX, stocks muted on US policy caution; Pakistan dollar bonds climb

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China leaves benchmark lending rates unchanged, as expected

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

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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 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

(Reporting by Ankika Biswas in Bengaluru; Editing by Andrew Cawthorne)