Analysts at TD Securities note that Bank Indonesia cuts its 7 day reverse repo rate by 25bp to 5.0% as expected.
Key Quotes
“Low inflation, a stable to firmer currency and weaker activity provided sufficient reason to cut rates again. BI kept its forecasts broadly unchanged, seeing GDP below the midpoint of its 5%-5.4% range while inflation is expected to be below the midpoint of its 2.5%-4.5% range.”
“BI noted they will monitor global and local growth, suggesting a more data dependent approach going forward. We see scope to ease again, with at least another 50bps likely in this cycle.”
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