Indonesia's Central Bank Likely to Stand Pat, WSJ Poll Shows

Dow Jones
Aug 18

0409 GMT - Bank Indonesia is expected to keep its benchmark seven-day reverse repo rate steady at 5.75% on Wednesday, according to six out of seven economists polled by The Wall Street Journal. One economist forecasts BI to raise the policy rate by 25 basis points to 6.0%. The meeting will be the first since Indonesia's president nominated acting Gov. Destry Damayanti as the sole candidate to lead the central bank, signaling policy continuity amid a volatile global environment, HSBC economists write. The outlook for growth and inflation has improved, while the rupiah has strengthened about 1% since end-July, they note. With rates expected to be unchanged, investors' focus will likely be on how BI manages liquidity and ensures that excess bank funds support lending and economic activity, HSBC says.

 

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