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Analysts at TD Securities are expecting Bank Indonesia to cut its 7-day reverse repo policy rate for a fourth straight month to 5.0%.

Key Quotes

“BI’s concerns about global trade tensions are unlikely to have been allayed by the limited trade deal between the US and China. Exports continue to be pressured, a factor that is feeding into domestic demand. Manufacturing remains in contraction and investment spending is lacklustre.”

“Meanwhile CPI remains below the midpoint of BI’s 3.5% +/- 1% target corridor and looks unthreatening having fallen by -0.27% m/m in September. Meanwhile IDR remains stable, all of which gives BI room to ease further.”