ING’s Lynn Song expects Bank Indonesia to keep its benchmark rate unchanged at 5.75% this week, prioritizing Rupiah stability while avoiding an immediate hike. The report highlights BI’s growing reliance on non-rate tools such as SRBI yields and FX intervention. Leadership transition at BI is seen reducing the likelihood of an August move, with continuity the key message.
BI seen holding benchmark rate steady
“We expect Bank Indonesia to hold the benchmark rate at 5.75% on Wednesday.”
“BI’s unexpected July hold showed that policymakers are increasingly balancing rupiah stability against the need to support growth.”
“While exchange-rate stability…
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