Indonesia: Easing continues from Bank Indonesia – ANZ

ANZ analysts note that the Bank Indonesia (BI) lowered its 7-day reverse repo rate by 25bps to 5.25% today, marking its third straight month of rate cuts.

Key Quotes

“The decision reflects BI’s desire to support growth pre-emptively. BI also announced a relaxation of macroprudential policies in a bid to bolster loan growth.”

“Given the still-challenging growth environment, further easing looks likely. We continue to see scope for at least one more 25bp rate cut in Q4.”