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At its September monetary policy meeting held on Thursday, Indonesia’s central bank, Bank Indonesia (BI), left its 7-day reverse repo rate unchanged at 4.0%, as widely expected.

Governor Warjiyo said that the early indicators in August show signs of global economic recovery.

Additional comments

Some geopolitical tensions have affected global capital markets, including Indonesian currency.

Domestic household consumption seen limited improvement.

Domestic econ recovery prospect will be affected by people’s mobility, govt spending.

Maintains forecast 2020 current account deficit to below 1.5% of GDP.

Rupiah exchange rate is fundamentally undervalued, have room to strengthen.

2020 and 2021 inflation YOY to remain within 2%-4% target range.

Banking liquidity is more than enough to support economy.

Has injected 662.1 trillion rupiah into banking system.

Banking loan growth remain weak.

Bi to continue accommodative macroprudential stance.

Interest rate decision taken to maintain rupiah stability.