- Bank Indonesia maintained its policy rate of 6%, mainly due to more hawkish market expectations caused by escalation in the Iran-Israel conflict, China’s uncertain stimulus size, better than expected U.S. data, and the looming U.S. presidential election.
- BI’s belief that Rupiah’s fundamental value was more accurately reflected in August and September may complicate their exit plan from SRBI.
- BI has realigned KLM to focus more on labor-intensive industries, as well as extending 0% MDR for all QRIS transactions up to Rp 500k.
- The lack of a cut this month is likely to be temporary stoppage on a dovish road, but uncertainty about the global market slowdown, much less a soft landing represents many speedbumps ahead.