2022-07-21 03:47:50
Markets
*"Indonesia Set to Hold Rate Despite Peer Pressure: Decision Guide"*
• Majority of economists see key rate kept at record-low 3.5%
• Policy outlook will be scrutinized as inflation, rupiah worsen
*_Indonesia’s central bank will probably keep its benchmark interest rate at a record low, opting to stick to a dovish path abandoned by most peers amid worsening inflation and weakening currencies._*
Twenty-two out of 36 economists surveyed by Bloomberg expect Bank Indonesia to keep the seven-day reverse repurchase rate unchanged at 3.5% on Thursday. The rest predict the rate to be lifted by 25 basis points.
A pause will solidify Indonesia’s position as one of the few holdouts of easy policy, when decades-high inflation in developed economies from the US to the UK is boosting the case for more aggressive tightening there. As many central banks in Asia tighten their own monetary policies to defend their currencies from higher US borrowing costs and a stronger dollar, Bank Indonesia has so far drawn comfort from a relatively resilient rupiah and price gains that are comparatively low.
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https://www.bloomberg.com/news/articles/2022-07-20/indonesia-set-to-hold-rate-despite-peer-pressure-decision-guide?srnd=markets-vp
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