Indonesia's inflation-growth mix supports steady Bank Indonesia stance
DBS Group Research economist Radhika Rao notes that Indonesia’s onshore markets are focused on the appointment of a new Bank Indonesia governor, with the acting governor prioritizing non-rate measures and IDR stability.
Indonesia’s onshore markets are closely watching the transition at Bank Indonesia (BI) following Perry Warjiyo’s departure. Acting Governor Destry Damayanti is placing emphasis on non-rate policy tools and exchange rate stability, according to DBS Group Research economist Radhika Rao.
Rao highlights that the current mix of economic growth and inflation provides room for BI to maintain a steady policy stance. The focus on non-rate measures suggests that the central bank is likely to rely on macroprudential and other tools rather than immediate interest rate adjustments.
The rupiah’s stability remains a key priority, with the market awaiting clarity on the permanent governor appointment. The steady approach is seen as supportive of the currency amid global uncertainties.
Source: FXStreet Forex News