The Central Bank of Indonesia is predicted to cut interest rate after the improvement of several economic data. Head Economist of Bank Danamon, Wisnu Wardhana, stated the possibility of Bank Indonesia to cut its BI 7-Day Repo Rate by 25 bps to 4,25%.
Some of the considerations are Indonesia’s Trade Balance which had a USD 2,09 Billion surplus and also Foreign Reserves which was up 2,8% in May 2020. Bank Indonesia’s Board of Governors meeting is scheduled on June 18th 2020.
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