ANZ Predicts Bank Indonesia Will Cut Policy Rate in October
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- ANZ has changed its monetary policy call on Indonesia and is now expecting the central bank to cut the policy rate by 25 bps in October, economists led by Sanjay Mathur write in note.
- Further easing cannot be ruled out if external environment remains favorable
- Change in view is based on the following considerations: continued softness in growth momentum, contained inflation and favorable sustainable balance of payments position, and favorable interest-rate differential with the U.S.
- ANZ cites dovish tilt in Bank Indonesia’s tone; IDR remaining stable would allow room for policy easing
- Recommends overweight duration in Indonesian bonds; market hasn’t priced in a cut
- READ: Bank Indonesia Will Cut Policy Rate Tuesday: Morgan Stanley
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
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To modify this alert, click here
UUID: 7947283