Bank Indonesia Expected to Hold Rates Steady Despite Inflation Pickup

Dow Jones
1小時前

0853 GMT - The pickup in inflation in Indonesia is not expected to significantly pressure Bank Indonesia to resume rate hikes, especially as the trade balance returned to a surplus, Barclays economist Brian Tan says in a note. Indonesia's inflation rebounded to 3.19% in August from 2.88% in July, while the trade balance returned to a surplus in July after two consecutive months of deficits. The return of a trade surplus is expected to ease concerns over import-driven growth and rupiah pressure, he says. Bank Indonesia is projected to maintain policy rates on hold through 2026 if rupiah pressures stay contained, while previously anticipated rate cuts in 2027 are no longer expected, he adds.

 

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