BI Rate Cut to Spur Return of Foreign Capital

Bank Indonesia’s decision to slash key rates could trigger a momentum in Indonesia’s stock market as foreign investors return, analysts say.

Bisnis.com, JAKARTA — Tides are turning as analyst project foreign capital to start returning with Bank Indonesia’s (BI) rate cut from 5.75% to 5.50% in the last policy meeting on May 20–21.

Experts believe this rate cut, and the subsequent inflow of foreign capital, could inject a sorely missed vibrancy into the stock market as a whole.

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