Bank Indonesia: Patient pause – ANZ

Analysts at ANZ note that Bank Indonesia (BI) left its 7-day reverse repo rate on hold at 5.00% today, as widely expected.

Key Quotes

“BI’s policy messaging continued to signal an easing bias, and domestic growth and inflation dynamics support the case for more easing.”

“However, external stability remains a constraint for aggressive rate cuts, in our view.”

“Overall, we maintain our forecast for one more 25bp rate cut in the current easing cycle, likely in Q1.”