Bank Indonesia to hold rates in June but start hiking next quarter: Reuters poll – Reuters

Bank Indonesia to hold rates in June but start hiking next quarter: Reuters poll – Reuters

June 20, 2022 0 By

FILE PHOTO: Bank Indonesia’s logo is seen at Bank Indonesia headquarters in Jakarta, Indonesia, September 2, 2020. REUTERS/Ajeng Dinar Ulfiana

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  • BI rate decision due Thursday, June 23, around 0700 GMT

BENGALURU, June 21 (Reuters) – Bank Indonesia will leave its key interest rate steady at 3.50% on Thursday but over one-quarter of economists in a Reuters poll expect a rate rise to stem imported inflation from a weak rupiah currency as the U.S. Federal Reserve tightens aggressively.

Indonesia’s central bank is one of a few major Asian central banks that has not raised rates from a pandemic record low since inflation has held within its target range of 2%-4%.

But a 75-basis-point Fed rate rise last week and the prospect of more aggressive moves in the coming months sent the rupiah tumbling by 2%, its worst weekly performance in nearly three years.

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Source: https://www.reuters.com/markets/rates-bonds/bank-indonesia-hold-rates-june-start-hiking-next-quarter-2022-06-21/