USD/IDR: BI will only dial-up its concern over the Rupiah if it tracks above the 15,200 level – TDS

USD/IDR appears to be consolidating around the 15,000 level. Economists at TD Securities analyze Rupiah outlook ahead of Bank Indonesia meeting.

BI to keep its 7-day reverse repo rate at 5.75%

We expect BI to keep its 7-day reverse repo rate at 5.75%, prolonging the pause since February. 

We don’t expect any rate cuts in the near term as any premature cut may weigh on IDR, especially after the deterioration in trade balance recently. 

We think BI will only dial-up its concern over the currency if it tracks above the 15,200 level.