Central Banks
Indonesia Holds Rate, Signals Patience Before Easing Pivot
- Governor expects rupiah to strengthen amid solid fundamentals
- BI sees Fed cut in Nov., earlier than its previous forecast
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Indonesia’s central bank left its policy rate unchanged and signaled that while it may have room to cut borrowing costs later this year, it’s in no rush to ease to ensure support for the rupiah.
Bank Indonesia kept the BI-Rate at 6.25% for a third straight meeting on Wednesday, a decision expected by all 35 economists surveyed by Bloomberg News. The rate is at its highest level since the benchmark was introduced in 2016.