Bank Indonesia’s easing cycle extends into fourth month

October 24, 2019

JAKARTA -- Bank Indonesia (BI) lowered its 7-day reverse repo rate by 25bps for the fourth straight month today, to 5.00%.The central bank cited its desire to support growth pre-emptively, manageable inflation, and still-attractive returns on domestic assets as the key factors behind its decision.

"As long as external stability is maintained and inflation remains contained, we think further easing is more likely than not and are now pencilling in another 25bp rate cut in BI's current cycle," ANZ Bank says in a research note. (ATI).