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Governor Warjiyo Signals Patience, Rupiah Unfazed

INDONESIA CENTRAL BANK

USD/IDR 1-month NDF remained near familiar levels as Bloomberg ran comments from Bank Indonesia Governor Perry Warjiyo, who said that the central bank will be "a bit patient" and continue to watch data on a monthly basis before assessing the case for any interest-rate cuts.

  • Warjiyo said in a briefing that inflation is easing faster than expected but remains above the +2.0%-4.0% Y/Y target range. Current monetary policy settings are sufficient to guide CPI back to the target, hence BI has "no plans to raise" its key rate. The rupiah is expected to appreciate further after the Fed hinted that it might pause monetary tightening.
  • USD/IDR 1-month NDF trade +57 figs at IDR14,741 as they cling to overnight gains. Topside technical focus is on Apr 19 high of IDR15,044, while bears look for a breach of May 4 low of IDR14,577.
  • Spot USD/IDR closed +25 figs at IDR14,700.

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