Central Banks
Indonesia Sees Rate Cuts in Fourth Quarter Despite Rupiah Rally
- Rate kept at 6.25%, highest since 2016, despite rupiah rally
- Global volatility, geopolitics still warrant caution: governor
This article is for subscribers only.
Indonesia’s central bank held its benchmark interest rate steady as expected, signaling that it will wait until the fourth quarter before pivoting when the Federal Reserve has gotten its easing well under way.
Bank Indonesia left the BI-Rate unchanged for a fourth straight month at 6.25% Wednesday, the highest level since the benchmark was introduced in 2016. That’s in line with the forecast of 34 of the 36 economists surveyed by Bloomberg, with the rest expecting a quarter-point cut.