Economists at TD Securities discuss IDR outlook ahead of the Bank of Indonesia Policy Decision.

BI may extend its pause

BI may extend its pause since Feb as headline inflation eased back to its 2-4% target while core CPI decelerated further. However, we think rate cuts are unlikely in the near-term as narrowing of rate differential could erode support for IDR.

USD/IDR is approaching a key psychological level of 15,000 which BI could be closely watching and a dovish stance won't be helpful for IDR