Free Trial

VIEW: Friday saw HSBC note that "given....>

INDONESIA
INDONESIA: VIEW: Friday saw HSBC note that "given BI's growing programme of
outright bond purchases, we believe BI should maintain a cautious policy stance.
That said, with growth undershooting BI's estimate in 1Q and signs of an
accelerating spread of COVID-19 domestically, the central bank will be under
pressure to deliver some support for the economy. We expect BI to deliver a 25bp
cut in 2Q, likely in the 20 May meeting, followed by a 25bp reduction in 3Q
(previously, HSBC expected 50bp of cuts in 2Q). We continue to see a further
100bp reduction in the IDR Reserve Requirement Ratio as BI endeavours to use all
measures to facilitate the financing of a larger budget deficit."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.