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1 Apr 2020
Indonesia: Inflation is not a concern – ANZ
Indonesia’s headline inflation remains within the central bank’s target band. Inflation has really become a background issue, thereby allowing monetary policy to support growth, economists at ANZ Bank apprise.
Key quotes
“Indonesia’s March headline inflation remains comfortably within the central bank’s 2-4% target band, at 2.96%.”
“On a sequential basis, headline CPI moderated 0.1% m/m in March from 0.28% in February.”
“The government has scaled back its 2020 GDP growth forecast by 300bps to 2.3%.”
“A 25bp reduction in the policy rate later this month is a certainty, in our view.”