BI’s rate hike likely in December

The Bank of Indonesia (BI) is likely to keep its bank rates unchanged at its monetary policy meeting in November. 

The BI targeted the country's inflation rate at 4±1%, but the headline inflation rate stood at 6.25% yoy in October. On the other hand, GDP growth of the economy is quite weak in Q3 as it stood at 4.73% yoy.

Household demand a key driving factor of the economy remained flat at 5% growth. Societe Generale foresees a rate hike by BI in December and next easing in Q1 2016.