Bank Indonesia (BI), led by Governor Agus Martowardojo kept is policy rate unchanged at the monetary policy meeting held Thursday, while leaving room for a rate cut in the upcoming new year.
BI left the benchmark interest rate at 4.75 percent for the third straight month. This followed the aggressive 150 basis points of cuts in the first nine months of this year.
At this stage, the BI is in a wait-and-see mode given the increasing volatility in the global markets. That said, growth momentum remains sluggish, with 2017 growth seen at 5.3 percent and still below the potential growth rate of 7 percent, Commerzbank reported.
Meanwhile, inflation is expected to remain well contained within BI’s target of 3–5 percent and the current account remains at still manageable levels.
"Against this backdrop, we expect BI to remain accommodative and to deliver one more rate cut in 2017," the report mentioned.


Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons
FxWirePro: Daily Commodity Tracker - 21st March, 2022
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook




