Insight

More Cuts Are Coming from Bank of Indonesia

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Algo Research Team

Market | Sep 26, 2024 | Views: 51

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Key Summary:

  • Dovish cycle begins with 50bps additional cuts this year
  • Market front-run expected BI interest rate cut
  • BI maintains GDP and inflation guidance for 2024

Bank of Indonesia (BI) surprised market this month with a 25bps interest rate cut that brought BI rate down to 6%, deposit facility to 5.25% and lending facility to 6.75%.


Context: The move was much earlier than market expectation as BI believed that the time was right to bring balance between currency stability and economic growth, especially given Fed’s dovish outlook and low domestic inflation.

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