Bank Indonesia is expected to keep the interest rates steady at a policy review this Thursday, but may begin easing cycle later this year, a Reuters poll showed.
19 of 22 analysts polled predicted Bank Indonesia (BI) will hold the 7-day reverse repurchase rate at 6.0%, where it has been since November. The remaining three forecasted a 25 basis point rate cut.
USD/IDR is currently trading at 14,330, having defended 14,220 over the last eight days. The pair, however, has produced lower highs over the last four weeks and the bearish setup would be invalidated only above Jan. 7’s high of 14,382.
Key points (Source: Reuters)
All eight respondents who gave a view on the year-end benchmark expect at least one rate cut in 2019. Four predicted the rate would end the year 25 bps below its current level, three saw it 50 bps lower, and one saw the rate 75 bps lower.
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