Economics
Indonesia Decision Guide: Interest Rate Cuts Back in Play
- Several economists now forecasting bank will cut policy rate
- Inflation slowing, while economic growth still below 7% goal
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Interest rate cuts are once again on the table in Indonesia.
With inflation and credit growth slowing, central bank Governor Agus Martowardojo has spurred speculation he may resume policy easing to give a boost to Southeast Asia’s biggest economy. Bank Indonesia has been on hold since its last reduction in October, but with the threat of capital outflows from higher U.S. interest rates lessening, policy makers in Indonesia may be ready to ease again.