Indonesian Rupiah: BI expected to extend policy pause – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad expects Bank Indonesia (BI) to keep its policy rate at 5.75% for a second straight meeting after 100 bps of tightening since May. With Indonesian Rupiah (IDR) pressures easing and inflation within target, he sees room for a continued pause as new governor Destry Damayanti debuts at this week’s policy meeting.
Stable inflation allows BI on hold
"Bank Indonesia (BI) widely expected to keep rates on hold at 5.75% for a second straight meeting (Wednesday). BI can afford to pause after delivering 100bps of tightening since May."
"The slump in IDR eased, and inflation remains within the bank’s 1.5%-3.5% target range."
"The meeting will mark Destry Damayanti’s debut as BI governor. Previously, Destry was the top deputy to former Governor Perry Warjiyo who unexpectedly resigned last month for “personal reasons,” two years ahead of the end of his second five-year term."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
