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Bank Indonesia Stands Pat On Rates

INDONESIA CENTRAL BANK

Bank Indonesia left the 7-Day Reverse Repo Rate unchanged at 5.75%, in line with virtually unanimous consensus forecast.

  • Governor Warjiyo said that the Fed is expected to raise rates in November, while global economic growth may print at +2.7% Y/Y this year, although uncertainty remains high.
  • The official said that the rupiah remains under control in line with fundamentals and Bank Indonesia's policies.
  • The central bank expects inflation to average at +2%-4% Y/Y in 2023 and +1.5%-3.5% in 2024. Inflation will be managed through rate policies and IDR stabilisation.

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