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HSBC: Bank Indonesia May Further Cut Rates by 100 Basis Points in the Coming Quarters

HSBC: Bank Indonesia May Further Cut Rates by 100 Basis Points in the Coming Quarters

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金色财经金色财经2025/05/22 03:42

Two economists from HSBC Global Research stated that following a 25 basis point rate cut on Wednesday, Indonesia's central bank may further cut rates by 100 basis points in the coming quarters. HSBC expects a 25 basis point cut in the third quarter of 2025, a 50 basis point cut in the fourth quarter of 2025, and a 25 basis point cut in the first quarter of 2026, bringing the policy rate to 4.50%. Indonesia's "combination of growth and inflation clearly supports further rate easing when fiscal measures may not address all growth issues." The Reserve Bank of India may need to do some heavy lifting to support economic growth, which might require giving the Indonesian rupiah more leeway than before. (Jin10)

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