According to analysts at TD Securities, Bank Indonesia’s rate announcement on 23 October is expected by the market to leave rates unchanged, i.e. the 7d reverse repo rate at 5.75%.
Key Quotes
“We, however, expect a 25bps hike to 6.00% largely as a result of pressure on the currency, rather than any intensification of inflation. Rate hikes will likely be implemented in addition to other measures to support IDR. While there is a risk that BI takes a pass at the meeting as the central bank assesses the impact of previous hikes and other measures to reduce the current account deficit, we think such a risk is limited.”
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