Indonesia: Bank Indonesia to maintain status quo - TDS
Analysts at TD Securities expect no change in policy by Bank Indonesia, neither does unanimous consensus.
“Inflation is clearly non-threatening from BI’s perspective. While CPI ticked higher to a 3.32% y/y pace in November it is still below the mid-point of BI’s (3.5% +/-1%) target range. Inflation is likely to trend higher in the coming months, albeit gradually, but unless the IDR weakens anew, we think BI may be increasingly in a position to keep its powder dry.”
“We think the bulk of pressure on IDR has passed and expect a much more gradual (and comfortable) pace of depreciation in 2019.”