After surprising the markets with a 25bps rate cut, the Bank Indonesia’s Governor continues to speak at the presser, with the further comments found below.
Policy rate decision is consistent with low inflation outlook.
Decision also to support GDP growth, cushion economy from global economic slowdown.
Looking forward, central bank to continue with "accommodative policy mix".
Consideration for rate cut also includes attractiveness of Indonesian assets for foreign investors.
We have to take preemptive move to anticipate global economic slowdown.
Interest rate cuts aimed at stimulating demand for loans.
To continue to explore macroprudential tools that can be loosened.
Inflation seen around 3% in 2020.
Aggregate demand is seen below aggregate supply in next 2 years.
Baseline for latest decision is for no more us interest rate cut this year.
Markets see possible more interest rate cuts by the US Fed.
Will remain in the market for Rupiah stabilization.
The USD/IDR pair is seen resuming its recent declines, having failed to sustain the bounce around 14,240 region to now retest the three-day lows of 14,225 as BI rate cuts are done for this year.
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.