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MNI Point of View:
- This week's monetary policy meeting seems poised to be another non-event, with policymakers facing conflicting demands of their policy mandate. With inflation still subdued and the rupiah still vulnerable, the MPC will likely stand pat on the 7-day reverse repo rate. Elevated uncertainty around the local Covid-19 outbreak provides another reason for policymakers to hold fire this time, while green shoots in high-frequency economic recovery mean that they are in a position to wait and watch upcoming developments.