- BI lowered its policy rate by another 25 bps to 5.00%, providing the necessary stimuli to maintain the ongoing growth momentum.
- The slowing loan growth seems to be central to BI’s rate-cut decision, as the antithetical trend between loan and deposit growth may portend a slower nominal GDP growth.
- The stable domestic financial market amidst the strengthening FFR cut expectation may allow BI to maintain its dovish signal.
