Emerging Asia Economics

Emerging Asia Economics Update

17 January, 2019

Indonesia: monetary policy outlook depends on rupiah

Bank Indonesia (BI) today left its policy rate unchanged for a second consecutive meeting, while there was nothing in the central bank’s statement to suggest that further rate hikes are imminent. However, given the likelihood of renewed falls in the currency over the coming months, we think it is too soon to call an end to BI’s tightening cycle.

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