Indonesia Set to Hold Rate as Rupiah Strength May Be Short-Lived.

Indonesia's central bank is expected to maintain its benchmark interest rate at 6.25% for the third consecutive month in order to support the rupiah amidst domestic fiscal uncertainty and geopolitical tensions. The rupiah has rebounded by 1.2% this month, partly due to growing confidence in a potential US policy rate cut in September. However, risks to the currency remain, including the weakening external balance and uncertainty surrounding the fiscal stance of the incoming government. Analysts anticipate that the central bank will prioritize financial market stability and wait for the rupiah to stabilize before considering a rate cut. [Extracted from the article]

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