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Indonesia’s April headline inflation eased for the second consecutive month while sitting comfortably within the central bank’s 2-4% target band, economists at ANZ Bank brief. USD/IDR trades at 15,116.00.

Key quotes

“On a sequential basis, headline CPI rose 0.08% m/m in April from 0.1% in March while Core CP eased to 2.85% y/y (April: 0.17% m/m vs March: 0.29%). With this, inflation eased for the second consecutive month, sitting comfortably within Bank Indonesia’s target band of 2-4%.”

“With inflation increasingly becoming a background issue for monetary policy, we believe a 25bp reduction in the policy rate later this month is in the cards.”