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MNI BI Preview: FEB 2025: On Hold, Time on their Side.

The BI to remain on hold at tomorrow's meeting, following January's surprise cut.
  • According to the BI January's decision to cut was consistent with their inflationary forecasts for further low inflation for 2025 and 2026.
  • The BI stated that it will continue to consider room for monetary easing to drive economic growth, whilst focusing on macroprudential, growth orientated policies.
  • The BI sees IDR exchange rates ‘under control’ even in the face of increasing trade tensions due to the Central Bank’s policies.
  • With Q4 growth at 5.0%, further rate cuts aren't urgent and the pivot to macro-prudential measures seems a logical stance from the BI, buying them time to move slowly on rates. 

 

BI Preview - February 2025 (final).pdf

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  • According to the BI January's decision to cut was consistent with their inflationary forecasts for further low inflation for 2025 and 2026.
  • The BI stated that it will continue to consider room for monetary easing to drive economic growth, whilst focusing on macroprudential, growth orientated policies.
  • The BI sees IDR exchange rates ‘under control’ even in the face of increasing trade tensions due to the Central Bank’s policies.
  • With Q4 growth at 5.0%, further rate cuts aren't urgent and the pivot to macro-prudential measures seems a logical stance from the BI, buying them time to move slowly on rates. 

 

BI Preview - February 2025 (final).pdf