Today’s cut marked the resumption of Bank Indonesia’s rate-cutting cycle. Analysts at ANZ Research forecast a further rate cut. USD/IDR is trading at 13811.30.
Key quotes
“BI cut its policy rate by 25bp to 4.75% following a three-month pause today.”
“BI may not be done with easing just yet. BI governor Perry Warjiyo stated in his press conference that the central bank will maintain an accommodative stance, and notably, BI now sees a >50% chance of a US Fed rate cut by September.”
“The combination of sluggish growth and benign inflation suggests BI is likely to favour easing a little further. We now expect one more 25bp rate cut in the central bank’s easing cycle.”
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