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MNI BI Preview - March 2023: Unchanged, Tools To Defend IDR

INDONESIA CENTRAL BANK

Bank Indonesia (BI) is widely expected to leave rates unchanged at 5.75% for the second consecutive month. This cycle it tightened a cumulative 225bp bringing the 7-day reverse repo rate to one of the highest in Asia. However, the previous BI statement and comments from Governor Warjiyo suggest that there isn’t any more tightening in the pipeline and that the central bank has other tools to defend the currency.


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