Bank Indonesia likely to hike rate by 25 bps in May – DBS Bank

Bank Indonesia announced an unscheduled policy meeting on 30 May. Softness in the currency and rising bond yields have probably perturbed the new BI Governor, raising the probability of a follow-up 25 basis point hike to reiterate that policymakers are ahead of the curve, noted DBS Bank in a research report.

Elsewhere, softer sentiment on emerging markets debt has already nudged several central banks to tighten policy, which raises the likelihood of further action from the BI, added DBS Bank.

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