IDR: Bank Indonesia to keep its policy rate on hold - TDS

Analysts at TDS expect Bank Indonesia to keep its policy rate (7d reverse repo) on hold at 4.25% at today's meeting in line with consensus expectations.

Key Quotes

“This outcome is likely to have a limited market impact in our view especially if BI maintains no bias in either direction as we expect. At the last meeting BI noted that it believed that past monetary easing was “adequate”, indicating little desire to ease policy further. Assuming that there is no surprises from BI, we will remove our expectation of a Q2 policy hike from our forecasts, with the first hike from BI likely in Q3, as the central bank moves the policy rate to 4.50%.”