Indonesia: BI expected to keep rates on hold this week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank Indonesia (BI) could leave its monetary conditions unchanged at this week’s event.

Key Quotes

“BI remains of the view that inflation expectations are anchored and lower than previous expectations, and that rupiah stability will continue. Specifically, BI expects that headline and core inflation rates have returned to BI's target range of 2-4% from its highest levels in Sep last year.”

“As such, we see BI keeping its benchmark rate steady at 5.75%, with the possibility of a 25bps rate cut in early-2024.”