- BI has kept the BI7DRR at 6.25%, following the slight recovery of the Rupiah throughout the month.
- But compared to the beginning of the year, the Rupiah remains relatively weak due to the wide saving-investment gap.
- BI is likely to adopt a more cautious approach towards rate cuts, as declining commodity prices makes Indonesia more vulnerable to capital market fluctuations.
- Timeline of Fed cuts is still highly uncertain and will depend on developments in US politics and macro data.
