Bank Indonesia to pull rates lever in Q3, June move possible: Reuters Poll By Reuters

BENGALURU (Reuters) – Bank Indonesia will wait a few more months to raise rates from a record low despite rising inflation and aggressive moves by the U.S. Federal Reserve, according to a Reuters poll of economists that showed a growing minority expect a hike next month.

Although inflation surged to 3.47% in April, the highest in more than four years, it is still within Bank Indonesia’s 2%-4% target range, suggesting the central bank is not under immediate pressure to raise interest rates.

All but two of 27 economists in the May 12-19 poll expected Bank Indonesia (BI) to hold its benchmark seven-day reverse repurchase rate at a record low 3.50% at its May 24 meeting. Two expected a 25 basis point hike.