Free Trial

MNI BI Preview – February 2024: No Reason To Shift Rates

INDONESIA CENTRAL BANK
  • Bank Indonesia (BI) is unanimously expected to leave rates at 6.0% at its meeting on February 21. The accompanying meeting statement is likely to be scrutinised for any dovish changes or downward revisions to forecasts. Currently with inflation around the mid-point of the band, growth robust and the IDR still at weak levels, there is no reason to change rates.
  • BI Governor Warjiyo said that the window to begin easing is H2 2024, but a material and sustainable appreciation in the rupiah and the start of Fed rate cuts are probably going to be needed first, unless growth slows sharply and inflation with it.
  • February has seen some rupiah strengthening but FX stability is likely to remain BI's focus. Recent depreciation has put pressure on import prices, which the central bank is monitoring closely.
  • See full preview here.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.