Indonesia: BI to leave rates unchanged - TDS

According to analysts at TD Securities, Bank Indonesia’s rate announcement on 23 October is expected by the market to leave rates unchanged, i.e. the 7d reverse repo rate at 5.75%. 

Key Quotes

“We, however, expect a 25bps hike to 6.00% largely as a result of pressure on the currency, rather than any intensification of inflation. Rate hikes will likely be implemented in addition to other measures to support IDR. While there is a risk that BI takes a pass at the meeting as the central bank assesses the impact of previous hikes and other measures to reduce the current account deficit, we think such a risk is limited.”