{"id":187341,"date":"2025-11-18T15:56:13","date_gmt":"2025-11-18T15:56:13","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/187341\/"},"modified":"2025-11-18T15:56:13","modified_gmt":"2025-11-18T15:56:13","slug":"poll-bank-indonesia-to-hold-rates-steady-at-4-75-on-november-19-cut-next-month","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/187341\/","title":{"rendered":"POLL Bank Indonesia to hold rates steady at 4.75% on November 19, cut next month"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">A majority of economists, 24 of 30, expect rates to be on hold at 4.75% on November 19<\/li>\n<\/ul>\n<p>BENGALURU, Nov 17 (Reuters) &#8211; Bank Indonesia will hold its key interest rate steady again on Wednesday to limit pressure on the rupiah while it presses commercial banks to lower lending rates and assess the impact of previous rate cuts on the economy, a Reuters poll of economists showed.<\/p>\n<p>Last month, when BI unexpectedly <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/indonesias-central-bank-surprises-with-decision-hold-rates-steady-2025-10-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">paused<\/a> its easing cycle, Governor Perry Warjiyo said the priority was to get private banks to reduce lending rates to ease pressure on businesses and households who are struggling due to weak domestic demand and high borrowing costs.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/bank-indonesia-hold-rates-steady-475-november-19-cut-next-month-2025-11-17\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fasia-pacific%2Fbank-indonesia-hold-rates-steady-475-november-19-cut-next-month-2025-11-17%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>That, along with the rupiah&#8217;s near 4% drop against the U.S. dollar for the year, one of the weakest among emerging market currencies, suggests policymakers are likely to stay on hold again this month.<\/p>\n<p>But some economists caution the chances of BI defying expectations on Wednesday remain high as it has gone against the consensus view in the last three meetings.<\/p>\n<p>Governor Warjiyo <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/indonesias-central-bank-surprises-with-decision-hold-rates-steady-2025-10-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">said<\/a> last month there is still room for further rate cuts as inflation was expected to stay low through 2026. Inflation rose to 2.86% in October, its fastest pace this year, but remained within the central bank&#8217;s target range of 1.5%-3.5%.A majority of economists, 24 of 30, surveyed in the November 10-17 Reuters poll expected BI to leave its benchmark seven-day reverse repurchase rate <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/quote\/IDCBRR=ECI\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(IDCBRR=ECI), opens new tab<\/a> unchanged at 4.75% when the two-day meeting concludes on November 19. The rest saw a 25 basis point cut.<\/p>\n<p>The overnight deposit and lending facility rates were also expected to be kept at 3.75% and 5.50%, respectively.<\/p>\n<p>&#8220;Bank Indonesia will be faced with a delicate balancing act and our call is for a dovish hold. There is certainly no reversal from their pro-growth stance, but we expect persistent currency underperformance to shift the policy calculus,&#8221; Jing Yi Tan, market economist at Mizuho Bank Ltd, said.<\/p>\n<p>&#8220;They will also acknowledge that instead of pulling the rate-cut lever in a choked system, there is more plumbing work needed to improve policy transmission as lending rates remain sticky,&#8221; she added.<\/p>\n<p>BI has lowered its benchmark rate by a total of 150 basis points since September last year but banks have <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/indonesias-rate-cuts-arent-working-banks-hold-line-firms-baulk-2025-10-24\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">passed<\/a> on only 15 basis points of that reduction this year.<\/p>\n<p>While a pause appears certain at this meeting, a strong majority of economists, 21 of 24, forecast the benchmark rate to fall 25 basis points to 4.50% next month. One expected a 50 basis point cut and two predicted no change from 4.75%.<\/p>\n<p>ANZ&#8217;s Krystal Tan, who expects a cut next month, said: &#8220;BI is expected to retain an easing bias, with further rate cuts considered a matter of timing given still sluggish domestic demand and lackluster loan growth.&#8221;<\/p>\n<p>Looking ahead, 17 of 22 economists expected the benchmark rate to fall by 50 basis points to 4.25% by the end of Q1 2026. Three predicted it to fall 25 basis points and two saw a fall of 75 basis points to 4.00%.<\/p>\n<p>(Other stories from the November Reuters global economic poll)<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Rahul Trivedi; Polling by Veronica Khongwir and Vijayalakshmi Srinivasan; Editing by Vivek Mishra, Hari Kishan, William Maclean<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"A majority of economists, 24 of 30, expect rates to be on hold at 4.75% on November 19&hellip;\n","protected":false},"author":2,"featured_media":187342,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[84363,2000,2786,82703,82758,85715,85716,85717,105142,85718,79,84370,82710,83115,83116,179,18,82578,32356,82503,82774,105143,19,84365,84368,17,83122,97938,85212,84142,84362,82773],"class_list":{"0":"post-187341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-apoll","9":"tag-asean","10":"tag-asia","11":"tag-asxpac","12":"tag-bisv","13":"tag-bnk","14":"tag-bnks","15":"tag-bnks1","16":"tag-bsri","17":"tag-bsvc","18":"tag-business","19":"tag-cen","20":"tag-destseabs","21":"tag-eci","22":"tag-eco","23":"tag-economy","24":"tag-eire","25":"tag-emrg","26":"tag-fin","27":"tag-fins","28":"tag-id","29":"tag-id-int","30":"tag-ie","31":"tag-infl","32":"tag-int","33":"tag-ireland","34":"tag-mce","35":"tag-mmt","36":"tag-plcy","37":"tag-rep","38":"tag-rpoll","39":"tag-seasia"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115571523626446318","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/187341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=187341"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/187341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/187342"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=187341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=187341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=187341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}