Indonesia: Bank Indonesia likely to hold rates steady - TDS

Analysts at TD Securities are expecting Bank Indonesia to hold the 7 day reverse repo rate steady at 6.00% today.

Key Quotes

“Although the IDR has strengthened sharply and inflation has continued to move lower, BI maintains a hawkish stance even as they consider interest rates near their peak.”

“We think there is more downside potential for CPI over H1 19, but BI remains cognisant of the risks from a widening current account deficit and likely prefers to maintain higher rates to combat such risks. In this respect, “stability” is BI’s mantra on monetary policy.”