BI seen keeping rates on hold this week – UOB

Lee Sue Ann, Economist at UOB Group, suggested the Bank Indonesia (BI) is expected to leave the key interest rate unchanged at Tuesday’s meeting.

Key Quotes

“BI maintained its benchmark rate at 4.50% in April. Going forward, we still expect the BI to remain a accommodative while deploying other easing measures to support the economy. Our view is that BI may cut another 25 bps in 3Q20 to 4.25%. This is likely to be the last rate cut for 2020, thus bringing the 7-day Reverse Repo rate back to its lowest point before the 175 bps hike in 2018.”