Central Banks
Indonesia to Cut Rate in Second-Quarter After Pause, Poll Shows
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Indonesia’s central bank is expected to resume interest rate cuts following last week’s decision to leave borrowing costs unchanged, when policymakers stressed the importance of safeguarding the rupiah.
Economists predict a quarter-point reduction in the benchmark rate to 5.5% by the end of the second quarter, with a further 25 basis-point reduction in the last three months of 2025, according to the latest Bloomberg survey. They expect consumer price inflation of 1.15% for the first quarter, compared with a forecast of 1.85% in a February survey, giving a full-year inflation outlook of 2.1%.