- BI kept its benchmark rate in its November meeting, in-line with consensus amidst heightened global uncertainty.
- The end of the US shutdown and hawkish signals from Fed officials have strengthened the dollar and put pressure on the Rupiah.
- Given the current US labor market conditions, the probability for the Fed to continue easing into 2026 remains open, and BI might follow suit.
- BI may remain on track to hold its benchmark interest rate this year (4.75% eoy), while exploring other alternatives to achieve its dual targets.
