BI seen starting easing cycle with rate cut tomorrow

JAKARTA: Indonesia’s central bank is likely to begin an easing cycle with a rate cut, ahead of an anticipated Federal Reserve reduction of US rates at the end of July, the majority of analysts in a Reuters poll said.

In 2018, Bank Indonesia (BI) hiked its key interest rate six times by 175 basis points to respond to the Fed’s four increases that had contributed to sending the rupiah to its lowest level since 1998.