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Thought July 10, 2019 / 08:31 am UTC

Bank Indonesia: It’s all about the Timing

By Charu Chanana
While there is little doubt that Bank Indonesia will be joining the easing camp this year, the timing and magnitude of policy rate cuts remain the burning questions. We expect the central bank to take advantage of the opportunity provided by the low June inflation, a stable rupiah and high expectations of a Fed rate cut—and cut the 7-day reverse repo rate by 25bps to 5.75% at the July 18 meeting.
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