Bank Indonesia Seen in Survey to Sustain Tightening Until March

Economists see Indonesia’s central bank raising its benchmark interest rate faster and sooner than previously expected to make up for its late entry to the monetary tightening club.

Bank Indonesia’s seven-day reverse repurchase rate is expected to be raised by a full percentage point by March from the current 4.75%, according to a prediction by analysts in a Bloomberg survey between Nov. 3-10. Policymakers are thereafter seen pausing for the rest of 2023.