Bank Indonesia May Lower Rates as Output Gap Stays Negative -- Market Talk
Dow Jones11:32
0332 GMT - Bank Indonesia is expected to lower rates to support economic growth amid a prevailing negative output gap, Goldman Sachs economists say in a note. BI reiterated that there remains scope for further rate cuts, though the timing will be data-dependent, with policy decisions guided mainly by inflation expectations, especially core inflation, they note. A cumulative 50 bps of easing is expected by Goldman Sachs, with 25bp cuts in 1Q and 2Q, respectively, bringing the policy rate to 4.25%, although risks are skewed to the hawkish side if currency pressures persist. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 21, 2026 22:32 ET (03:32 GMT)
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