The Bank Indonesia (BI) is seen keeping its policy rate unchanged at 5.75% this week, according to Economist at UOB Group Lee Sue Ann.

Key Takeaways

We continue to expect BI to keep its benchmark policy rate unchanged. However, we are penciling in rate cuts in months to come.

In our view, the key catalysts for the start of the rate-cutting cycle would be a consistently declining inflation towards its target range, a more anchored and persistent stability of the rupiah, and an increasing need to support the growth momentum ahead.