USD/IDR: Upside risks likely to persist in the near term – SocGen

Economists at Société Générale expect Bank Indonesia to keep the policy rate unchanged at 5.75% in its monetary policy meeting next week and see upside risks for the USD/IDR pair.

BI likely to wait for the Fed

Bank Indonesia looks set to maintain the policy rate unchanged in the upcoming meeting.

The sensitivity of FX to interest rate differentials could progressively increase and especially in the context of Bank Indonesia staying pat and the Fed remaining hawkish. 

In the near term, upside risks to the USD/IDR are likely to persist.