Central Banks
Indonesia to Hold Key Rate as Prabowo Win Reduces Uncertainty
- Rupiah remains volatile as market pares bets of early Fed cut
- Defense Minister Prabowo set to win presidency in single round
Prabowo Subianto during a campaign in Jakarta on Jan. 27.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank will likely keep its benchmark interest rate steady as Prabowo Subianto’s impending victory in the presidential race removes the uncertainty of a lengthy election process, even as the rupiah remains volatile.
All 30 economists in a Bloomberg survey expect Bank Indonesia to keep the BI-Rate at 6% for a fourth straight month on Wednesday, a week after the election for a successor to President Joko Widodo who ends his decade-long tenure in October. Prabowo has claimed victory on Feb. 14, citing independent pollsters.