On June 20, eight economists surveyed by The Wall Street Journal believed that Bank Indonesia may continue to keep the benchmark 7-day reverse repurchase rate unchanged at 5.75% in June.
In a note, ANZ economists said inflation returned to the upper end of the central bank’s 2.0%-4.0% target range earlier than expected in May.
Bank Indonesia’s next move could be a rate cut, though the timing of the cut will depend on external conditions and only if the Fed is prepared to pause rate hikes for an extended period.
Bank Indonesia will announce its interest rate decision on Thursday.