- The normalising CA outlook following the seasonal spike in Q2 2024 and the returning foreign capital inflows may help the Rupiah to be more stable in the months ahead.
- The improving bank liquidity condition may further strengthen the Rupiah’s fundamentals, albeit the improvement is more driven by lower consumption.
- The now-stable Rupiah lowers the urgency for BI to adjust its policy rate, but efforts to prematurely loosen the financing condition may again expose the Rupiah to higher volatility.
