Indonesia: Inflation is not a concern – ANZ

Indonesia’s headline inflation remains within the central bank’s target band. Inflation has really become a background issue, thereby allowing monetary policy to support growth, economists at ANZ Bank apprise. 

Key quotes

“Indonesia’s March headline inflation remains comfortably within the central bank’s 2-4% target band, at 2.96%.”

“On a sequential basis, headline CPI moderated 0.1% m/m in March from 0.28% in February.”

“The government has scaled back its 2020 GDP growth forecast by 300bps to 2.3%.”

“A 25bp reduction in the policy rate later this month is a certainty, in our view.”