According to Jinshi Data, a survey by the Wall Street Journal showed that four of seven economists expected the Indonesian central bank to keep the 7-day reverse repurchase rate unchanged at 6.0%, while three expected it to be lowered to 5.75%.
Bob Savage, head of market strategy and insights at Bank of New York Mellon, said Bank Indonesia faces a challenge as concerns about exchange rate stability may prompt it to act cautiously despite high real rates, low inflation and a possible rate cut by the Federal Reserve supporting rate normalization.
With USD/IR above November levels, Savage expects Bank Indonesia to keep interest rates at 6.00% and keep an open mind on easing through 2025.