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2026-02-19 15:47:23
[Branch Governor of Indonesia: Room for Rate Cuts Remains, But Will Be "Data-Dependent"] ⑴ The Governor of Bank Indonesia stated on Wednesday that there is still room for future rate cuts, as inflation remains low and economic growth is expected to accelerate further. He pointed out that first-quarter GDP growth will be supported by Lunar New Year and Eid al-Fitr celebrations. ⑵ However, against the backdrop of persistent global uncertainty, the central bank will adopt a "data-dependent" stance. The Governor emphasized that rate cuts will only be implemented when sufficient policy space is confirmed. ⑶ This statement demonstrates the balance between the Indonesian central bank's easing bias and external risks. Controlled inflation provides the conditions for rate cuts, but the Federal Reserve's policy path and geopolitical factors remain constraints. ⑷ The market will focus on subsequent economic data to determine when the central bank will begin or continue its rate-cutting cycle. The recent policy communication by the Indonesian central bank has provided the market with clear guidance on the future direction of interest rates.
