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BI Preview – January 2021

BI Preview: Bank Indonesia To Stand Pat

  • Last year, Bank Indonesia delivered a cumulative 125bp worth of easing via interest rate reductions and launched one of the most ambitious QE programmes in the region, which included direct purchases of government bonds on primary market. Domestic and international conditions put policymakers in the position to wait for further data signals to assess the impact of stimulus delivered to date, while concern about the exchange rate should give them another reason to stay their hands.
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