Indonesia: BI expected to keep rates on hold – UOB

Lee Sue Ann, Economist at UOB Group, suggests the Bank Indonesia (BI) would leave unchanged its policy rate at this week’s meeting.

Key Takeaways

“With the current global development, we are of the view that BI has less room to trim its benchmark rate further.”

“Nonetheless, BI will keep its accommodative monetary policy via other monetary, macroprudential, and liquidity-supporting measures to effectively transmit the lowering of the benchmark interest rate so far into the economy.”

“We keep our BI rate forecast to stay at current level of 3.50% for the rest of the year.”