With inflation declining considerably in April to the lower bound of BI inflation target, thus easing inflationary concern, we expect Bank Indonesia to remain focused on growth rate and external pressure on Rupiah in setting policy rate. We maintain our view of unchanged policy rate in the near term, since Bank  Indonesia still have to...Read More

Highlight We expect Bank Indonesia to maintain its policy rates in its meeting this Thursday. This is attributable to the possibility of the Federal Reserve to hike its target rates sooner than expected, which will put pressure on Rupiah. Higher than expected inflation in 2016 will also confirm that it is not the time for...Read More

After cutting its policy rates by 25 basis points to 7.25% last month, we expect Bank Indonesia to cut the benchmark rate by another 25bps in the upcoming meeting. This possible rate cut is attributable to more controllable inflation outlook in 2016 and strengthening exchange rate in recent months. Weakening global growth outlook and downward...Read More

If recent developments in the global market are any indication, Bank Indonesia is set to face yet another challenging year ahead. Current liquidity in the banking system does not necessitate a change in the policy rates while the demand for loans is still dimmed. BI should maintain its policy rates in the upcoming meeting and...Read More

With the expected interest rate hike by Federal Reserve for the first time in seven years on the horizon, we maintain our view from last month that BI will and should keep its policy rates at the current level (Repo rate at 8%, FASBI rate at 5.50%, and BI rate at 7.50%).Read More

In a perfect world, current macroeconomic situation would have given BI some space to ease monetary policy. Year-to-date inflation hovers at 2.16%, well below BI’s lower-end target, while the trend of slowdown in growth seems to have bottomed out. This, however, is not a perfect world. We expect BI to maintain its policy rates (Repo...Read More

Bank Indonesia’s Board of Governors decided to maintain its policy rate: Repo rate at 8.00%, FASBI rate at 5.50%, and BI rate at 7.50%. We believe this is due to maintaining stability of Rupiah in the midst of global market uncertainty. On the other hand, real sector is still consolidating its activity.Read More