Central Banks
Slower, Shallower Rate Cuts Likely in Indonesia, Economists Say
- Central bank held rates for second month on Wednesday
- Dollar strength, tariffs could add to pressure on rupiah
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Bank Indonesia is likely to pursue slower and fewer cuts to its benchmark interest rate as global uncertainties put rupiah stability at risk, according to economists.
Most analysts expect Indonesia’s central bank to take a longer pause as geopolitical tensions and the prospect of higher US tariffs risk delaying the Federal Reserve’s monetary easing and spur investor demand for safe-haven assets like the dollar.