At its July monetary policy meeting on Thursday, Indonesia’s central bank, Bank Indonesia (BI), slashed its 7-day reverse repo rate by 25bps to 5.75%, as widely expected.
The central bank Governor noted that several central banks have pursued dovish monetary policies, including the Fed.
Additional Comments:
Q2 GDP growth seen at same pace with Q1.
2019 economic growth seen at below midpoint of 5.0-5.4% outlook.
Efforts to support domestic demand needed to mitigate falling exports.
To work with other authorities to lift economic growth.
2019 c/a deficit seen at 2.5%-3% of GDP, below 2018’s.
Sees y/y inflation at end-2019 below midpoint of 2.5-4.5% target range.
To pursue accommodative macroprudential policy to support lending growth.
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