Indonesia: BI expected to reduce rates – UOB

Lee Sue Ann, Economist at UOB Group, sees the Bank Indonesia (BI) cutting the key rate at its next meeting on October 13.

Key Quotes

“Lower than expected growth turnouts in H2, alongside low inflationary pressure, and should FX stability remain more entrenched, we expect a 25bps rate cut in Q4, bringing the benchmark rate to 3.75%.”

“BI could also opt for liquidity-supporting measures and macro-prudential policies.”