Bank Indonesia leaves rate unchanged

After hiking pre-emptively last month.

The moves would go a long way in cementing the central bank’s credibility further, an economist says.

According to Wellian Wiranto of OCBC, the break is well-deserved not just because of the festive air all around, but more due to the fact that it has already hiked pre-emptively last month.

Wiranto adds that while inflation will head up due to fuel price hike, the risk of secondary effect remains low - especially given how the global environment has been more replete with worries about deflation demons. Going into the new year, BI’s rate bias will likely remain upward.

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