Low Inflation Shows Bank Indonesia Is Coordinating on Policy

  • Central bank, government responding to price pressures
  • Most economists predict interest rate to stay unchanged Friday

UBS' Teather Sees no Change for Bank Indonesia

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In a country with a history of high and volatile inflation rates, it’s been a period of relative calm in Indonesia.

Price pressures, particularly for food, have been unusually subdued this year, contributing to a favorable economic environment that’s fueled record bond inflowsBloomberg Terminal into Indonesia and enabled the central bank to resume cutting interest rates.