Central Banks
Indonesia Set for Cautious Rate Pause Amid Fragile Rupiah Gains
- Bank seen holding key rate at 6% by most economists in survey
- Drop in Rupiah on Wednesday trims currency’s advance in Nov.
Shoppers at Tanah Abang market in Jakarta, Indonesia.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank is expected to keep its benchmark interest rate steady, while staying on guard against external volatility that could reverse the rupiah’s recent gains.
Of the 31 economists surveyed by Bloomberg, 25 expect Bank Indonesia to leave the seven-day reverse repurchase rate unchanged at 6% on Thursday. The rest see another quarter-point hike to follow through after the surprise increase last month, taking the key rate to its highest since it was introduced in 2016.