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Revision To BI's Inflation Forecasts Lends Support To Rupiah

IDR

Spot USD/IDR unwound gains into the close, finishing the session +5 figs at 15,700 as Bank Indonesia unveiled its updated macroeconomic forecasts. USD/IDR 1-month NDF last deal +19 figs at 15,718 after a downtick seen around the release of BI headlines.

  • Governor Perry Warjiyo said in a budget presentation in parliament that the central bank now sees CPI inflation accelerating to +3.2% Y/Y in 2024 from +2.84% expected this year. In September, Bank Indonesia had pencilled in CPI inflation rates of +3.0% for 2023 and +2.8% for 2024. Note that BI's inflation target range is +1.5%-3.5% Y/Y.
  • The Governor added rupiah exchange rate is under control and resilient enough to sustain pressure from wider greenback strength. The central bank set its projected 2024 average USD/IDR rate at 15,510.

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