February 18, 2025 04:32 GMT
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.
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