MNI BI Preview: FEB 2025: On Hold, Time on their Side.

• According to the BI January's decision to cut was consistent with their inflationary forecasts for further low inflation for 2025 and 2026.
• The BI stated that it will continue to consider room for monetary easing to drive economic growth, whilst focusing on macroprudential, growth orientated policies.
• The BI sees IDR exchange rates ‘under control’ even in the face of increasing trade tensions due to the Central Bank’s policies.
• With Q4 growth at 5.0%, further rate cuts aren't urgent and the pivot to macro-prudential measures seems a logical stance from the BI, buying them time to move slowly on rates. 

BI Preview - February 2025 (final).pdf