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MNI BI Preview – September 2021: Stabilisation Gives BI Some Breathing Space

EXECUTIVE SUMMARY

  • Indonasia's daily Covid-19 infections have eased while the rupiah has stabilised, giving Bank Indonesia some breathing space.
  • However, inflation remains subdued and high-frequency economic indicators suggest that the economy continues to struggle.
  • Bank Indonesia are widely expected to leave the policy rate unchanged at its record low, with Governor Warjiyo looking to gradually implement a normalisation strategy next year.

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