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Analysts at Australia and New Zealand Banking Group (ANZ) offered their take on Bank Indonesia’s decision to leave its benchmark interest rate unchanged for a third straight month on Thursday.

Key Quotes:

“Bank Indonesia (BI) has left its 7-day reverse repo rate on hold at 5.00% today, as expected.”

“Notably, the tone of the press conference was reasonably upbeat, suggesting BI is likely to maintain a wait-and-see stance in the near term.”

“While we remain of the view that BI’s easing cycle is nearing its end, it’s still too early to rule out a further cut. We continue to see scope for one last 25bp rate reduction in the current cycle.”