Central Banks
Bank Indonesia’s Tightening Era Is Drawing To a Close
- All economists in poll expect policy rate to remain at 6%
- Easing to happen slowly, with most seeing first cut in 3Q 2024
The Bank Indonesia headquarters in Jakarta.
Photographer: Rosa Panggabean/BloombergThis article is for subscribers only.
Bank Indonesia will probably keep borrowing costs unchanged and mark the end of its tightening cycle as the worst seems to be over for the rupiah.
All 29 economists in a Bloomberg poll expect BI to hold its seven-day reverse repurchase rate at a four-year high of 6% on Thursday. That level should be the peak as bets on the US Federal Reserve’s pivot toward easing spurs funds to return to Indonesian assets, according to 19 of 21 analysts in a separate survey.