JPMorgan: Indonesia may cut interest rates in July.

The report from J.P. Morgan stated that the Bank of Indonesia is expected to cut interest rates by 25 basis points at its July meeting, bringing the policy rate down to 5.25%. This expectation is supported by moderate inflation, stable currency and foreign reserves, and a trade surplus in May that was stronger than expected. Although the central bank is expected to hold rates steady after July, further rate cuts may be possible if external financial conditions improve, especially in U.S. Treasury yields and the U.S. dollar.