Bank Indonesia in no rush to cut rates – ANZ

ANZ analysts note that the Bank Indonesia (BI) has kept its 7-day reverse repo rate unchanged at 6.00% today, in line with expectations. 

Key Quotes

“With IDR holding up reasonably well, inflation benign and, importantly, the US Fed no longer pencilling in any rate hikes for 2019, further tightening by BI is no longer warranted. That said, there was little in the accompanying statement of BI’s press conference today that signalled that rate cuts are imminent.”

“BI reiterated its focus on external resiliency and until there is a material narrowing in the current account deficit, we expect the central bank to adopt a wait-and see stance.”