Bank Indonesia: Easing cycle becoming extended – ANZ

ANZ analysts note that Bank Indonesia (BI) lowered its 7-day reverse repo rate by 25bps for the fourth straight month today, to 5.00%.

Key Quotes

“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.”