Indonesia: BI seen reducing rates further this month – UOB

Lee Sue Ann, Economist at UOB Group, sees the Bank Indonesia (BI) cutting its key interest rate by 25 bps at its August 19 event.

Key Quotes

“BI cut its benchmark rate by another 25bpsto 4.00% in July. We still expect BI to remain accommodative; ensuring the recovery in Indonesia’s domestic market and overall economy to be expedient and sustained when the pandemic concerns dissipate.”

“As such, we still see a room for a final 25bps cut in 4Q20, bringing the 7-day reverse repo rate to a lower level at 3.75%”.