Bank of Indonesia expected to remain ‘on hold’ – BBH

FXStreet (Edinburgh) - Analysts at BBH sees the Bank of Indonesia leaving the benchmark rate unchanged at 7.5% at its meeting this week.

Key Quotes

“Bank Indonesia meets Thursday and is expected to keep rates steady at 7.5%”.

“Inflation eased to 6.8% y/y in September, but is running above the 3-5% target range”.

“Indonesia reports September trade then too, with exports seen at -15.3% y/y and imports seen at -20.5% y/y”.

“The economy remains sluggish, but high inflation and the weak rupiah has kept BI on hold. If inflation continues to fall and the rupiah firms, BI may try to sneak in a rate cut”.
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