- The Fed hold its policy rate steady at 3.50-3.75%, reflecting the central bank’s improving outlook on the economy.
- The pass-through effect of USD weakness to the inflation reading means that the US government may not allow a persistent weakness in the currency.
- The evolving need of US policy priorities may translate to persistently heightened USD volatility, creating episodic pressures on the Rupiah that may limit Bank Indonesia’s policy options.
