Indonesia: BI seen on hold later in the month – UOB

UOB Group’s Economist Lee Sue Ann expects the Bank Indonesia to keep its policy rate unchanged at 5.75% at its meeting on August 24.

Key Quotes

BI remains of the view that inflation expectations are “wellanchored” to BI’s target range of 2-4% until the end of this year. Jun’s inflation continued to ease and rupiah remains the strongest currency in Asia year-to-date.

We keep our view for policy rates to remain unchanged for the rest of this year.