Bank Indonesia set to keep rates at record low

Having cut rates by a cumulative 100bp since October, Bank Indonesia (BI) left its main policy rate on hold at a record low level for the second consecutive month today, as widely expected. Although fuel price hikes now look unlikely, inflation still looks set to rise sharply this year. We believe the central bank will keep its policy rate on hold for the rest of 2012.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.