Indonesia: 7 day repo likely to be maintained at 5.75% - TDS

According to analysts at TD Securities, the sharp rally in the IDR this month will likely remove any prospect of a rate hike at today’s meeting, with the 7 day repo likely to be maintained at 5.75%.

Key Quotes

“Bank Indonesia has been heavily focused on the currency and will feel that the 150bps of rate hikes since May will have done their work in ensuring financial stability.”

“Inflation remains well anchored, with the latest reading in October, still below the mid point of Bank Indonesia’s target inflation range. While we expect inflation to edge higher over the months ahead, further IDR appreciation could take further hikes off the table.”