Bank Indonesia today left interest rates on hold at 6.00%, and given worries about the exchange rate we don’t think it will be until the second half of next year at the earliest that it resumes its easing cycle. (Today’s decision was correctly predicted by 17 out of 31 analysts polled by Reuters, including ourselves. The other 14 expected a 25bps cut.) Following a cut in September, the policy rate has now been left on hold for three meetings in a row.
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