Indonesia c. bank hints at potential rate cut in Q4

Indonesia’s central bank governor, Perry Warjiyo, hinted at the possibility of an interest rate cut in the fourth quarter, but emphasised the bank’s current focus on maintaining rupiah stability.

Warjiyo commented on the Indonesian Rupiah hitting a four-year low of 16,475 per US dollar in June due to a strong US dollar and concerns about the new government’s spending plans.

Bank Indonesia (BI) forecasts the rupiah to trade within a range of 15,700 to 16,100 per US dollar for the remainder of 2024. As of Monday morning (08:21 GMT), the exchange rate stood at 16,250 IDR per USD.

While acknowledging the potential for a rate cut later this year, Warjiyo reiterated BI’s current focus on maintaining currency stability. “We will see if there is any room for easing in the fourth quarter,” he stated.

Attribution: Reuters