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View all search resultsThe government and the central bank are in a tight spot as global uncertainties shrink the room for measures that support growth amid the rupiah depreciation, US tariffs and higher inflation expectations, but an expansionary approach and good policy communication will go a long way toward reducing future risks.
A weak rupiah exchange rate limits Bank Indonesia’s scope for further monetary policy easing at this time, but the central bank is pinning its hopes on the appeal of Indonesian stocks and bonds to lift the currency’s worth.
Bank Indonesia’s benchmark rate remains at 6.25 percent for now, and the central bank expects room for a reduction to open up only in the fourth quarter, despite recent signals pointing to sooner interest rate cuts by the United States Federal Reserve.
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