The Indonesian economy is set to recover from pandemic shock as the economy re-opens and vaccines are deployed. Economists at Standard Chartered expect BI to squeeze in a 25bps policy rate cut to accelerate recovery, before pausing for the year and remain constructive on the IDR, given a manageable C/A deficit, relatively high carry and a weak USD. Key quotes “We forecast 2021 GDP growth at 6.0%, following a 1.7% contraction in 2020, on normalisation of economic activity, low base and exports recovery. “Inflation will increase gradually to 2.9% by year-end. Below-potential growth and stable food prices to keep inflation at BI’s target.” “We expect another 25bps policy rate cut in February to 3.5% before BI pauses in H2. BI again likely to focus on quantitative easing to support fiscal stimulus.” “We expect USD/IDR to strengthen to 13,800 by end-2021, amid manageable C/A deficit, relatively high carry and a weak USD.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/USD refreshes weekly tops, around 0.7740 region FX Street 2 years The Indonesian economy is set to recover from pandemic shock as the economy re-opens and vaccines are deployed. Economists at Standard Chartered expect BI to squeeze in a 25bps policy rate cut to accelerate recovery, before pausing for the year and remain constructive on the IDR, given a manageable C/A deficit, relatively high carry and a weak USD. Key quotes “We forecast 2021 GDP growth at 6.0%, following a 1.7% contraction in 2020, on normalisation of economic activity, low base and exports recovery. “Inflation will increase gradually to 2.9% by year-end. Below-potential growth and stable food prices to keep inflation… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
