BI seen reducing rates in March – UOB

Economist Lee Sue Ann at UOB Group suggested the Bank Indonesia (BI) could cut the key rate by 25 bps at the March meeting.

Key Quotes

“At the January meeting, BI decided to keep its 7-day Reverse Repo Rate unchanged at 5.00%. BI reiterated that the monetary policy will remain accommodative; consistent with low inflation expectations, maintained external stability, and efforts to support the domestic economic growth. We are sticking to our call for BI to shade its benchmark rate lower by 25bps to 4.75% at the March meeting.”