- BI maintained the policy rate at 6.25%, as it awaits rate cut actions by the Fed. The room remains open for potential BI Rate cuts in Q4.
- Recent Rupiah appreciation has been driven by euphoric expectations over Fed cuts, rather than improvement in domestic fundamentals.
- BI has three options to add liquidity and revive growth momentum: cutting the BI Rate, reducing the GWM, or unwinding SRBI.
- Unwinding SRBI could release the most liquidity into the market, but unwinding must be done gradually to avoid market disruption.
