Bank Indonesia keeps rates on hold, but ANZ tips 50bp cut in second half

JAKARTA - Bank Indonesia (BI) has kept interest rates on hold, in line with market expectations, but says ” further refinement” to a set of macro-prudential measures announced previously may be released in the coming week. These will attempt to arrest the slowdown in credit and GDP growth.

ANZ Bank says it still believes BI will cut rates in 2015, by 50 basis points, and the Indonesia’s intensifying growth slowdown adds credence to this view.

“However, inflation remains well above BI’s target and its focus on the IDR suggests rate cuts are still a number of months away,” ANZ says.  www.live.anz.com (ATI).