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Indonesia Policy Rate 6.25% (consensus 6.25%) in Jun-24

• Bank Indonesia kept the BI-Rate unchanged at 6.25%, aligning with market expectations to manage inflation and stabilize the Rupiah amid global uncertainties.
• Future interest rate decisions will be influenced by global financial market dynamics, particularly US monetary policy shifts, and the strong performance of the domestic economy driven by robust consumption and investment.
• Ensuring Rupiah stability and maintaining inflation within the 2.5 ± 1% target range remain central to Bank Indonesia’s strategy, supported by monetary, macroprudential, and payment system policies to foster sustainable economic growth.

Indonesia CPI Inflation 2.84% y-o-y (consensus 2.9%) in May-24

- Indonesia's CPI inflation for May 2024 was 2.84%, slightly below the consensus and indicative of subdued inflationary pressures relative to the average.
- Core CPI inflation and broader M2 money supply figures suggest mild underlying inflation against a backdrop of higher producer price inflation, indicating a potential absorption of costs within the supply chain.

Indonesia Policy Rate 6.25% (consensus 6.25%) in May-24

• Bank Indonesia maintained the BI-Rate at 6.25% in May, following the surprise rate hike in April, aligning with market expectations to stabilize the Rupiah and manage inflation within the 2.5 ± 1% target range.
• Future interest rate decisions will be influenced by ongoing global financial market uncertainties, particularly US economic conditions and geopolitical risks, alongside robust domestic economic performance and growth projections.
• Ensuring Rupiah stability and managing CPI inflation within the target range is central to Bank Indonesia's strategy, supported by monetary, macroprudential, and payment system policies to foster sustainable economic growth.

Indonesia CPI Inflation 3.0% y-o-y (consensus 3.1%) in Apr-24

- Indonesia's CPI inflation rate in April 2024 rounded down to 3.0% y-o-y, marginally below market expectations of 3.06%.
- The slight downside news was in non-core components as the core rate crept up by 5bps to 1.77% (consensus 1.76%).