In its latest commentary, Reuters reported that the Bank Indonesia (BI), the Indonesian central time, will have a tough time justifying delaying a rate cut should it refrain from slashing rates this Thursday.
Key Highlights:
“Global bond yields have plunged this week after the Fed laid the groundwork for rate cuts in 2019 and the ECB hinted at more stimulus.
This paves the way for more easing in Asia, leaving Bank Indonesia the outlier with its emphasis on financial market (primarily IDR) risks.
BI’s warning at its May 16 meeting that 2019 growth was expected to be below the midpoint of its 5.0%-5.4% range would also support a rate cut.
Indeed, Indonesia’s finance minister hinted in the latest Bloomberg interview that BI may ease monetary policy.
Extra Reading:
Indonesia central bank seen cutting rates before Fed moves – Reuters poll
Indonesia: The time is ripe for a rate cut – TDS
Share
