Analysts at TD Securities note that last month Bank Indonesia (BI) began reversing its 175bp of hikes undertaken last year amid low inflation and a push to boost growth.
Key Quotes
“While BI noted that they see more room for policy adjustment, increased market volatility, portfolio capital outflows and IDR depreciation since then, suggests that BI will pause at this meeting.”
“Nonetheless, we expect BI to cut by another 50bps by the end of the year as the central bank maintains its growth push.”
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