Indonesia: IDR stability should reopen the door for further rate cuts – ANZ
|Citing the need to maintain external stability, Bank Indonesia (BI) kept its policy rate unchanged today, per ANZ Bank. USD/IDR is trading at 15,726.00.
Key quotes
“Today’s status quo on rates was contrary to street expectations which forecasted a third consecutive cut.”
“The growth picture painted by the central bank was expectedly dire, with the 2020 GDP forecast reduced to 2.3%.”
“The BI forecast a reduction in the current account deficit to even 1.5% of GDP in Q1 2020. This extent of reduction, combined with dollar bond sales, bodes well for IDR stability which in turn, should reopen the door for further rate cuts.”
“We are retaining our forecast for a 25bp rate cut in Q2.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.