Bank Indonesia to keep rates on hold - Reuters poll; USD/IDR hits 4-month tops
|According to the latest Reuters poll of 20 analysts, the Indonesian central bank, Bank Indonesia’s (BI), is seen steering the key interest rate on a steady course for the sixth straight meeting due this Thursday, in the wake of escalating US-China trade tensions that weighs down on the Indonesian Rupiah.
Key Findings:
“All 20 analysts in the poll forecast no change in Bank Indonesia’s (BI) 7-day reverse repurchase rate, which has been 6.00 percent since November.
Of nine poll respondents who gave a view on the year-end benchmark rate, seven said the benchmark will be lower than now while two predicted it would still be 6.00 percent.”
Meanwhile, USD/IDR now prints fresh four-month tops at 14,550, as the Indonesian Rupiah continues to lose ground amid escalating US-China trade war.
“Since a peak in mid-April - when unofficial vote counts showed President Joko Widodo securing a second term - the rupiah has dropped about 3 percent against the dollar, due to souring foreign investors sentiment for risky assets and a cyclical rise in dollar demand in Indonesia for offshore payments,” as cited by Reuters.
USD/IDR Technical Levels
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