RTTNews - Indonesia's annual inflation eased to 6.04% in May from 7.31% in April, Statistics Indonesia said Monday. Meanwhile, economists had forecast a rate of 6.2%. On a monthly basis, consumer prices were up 0.04% in May following a decrease of 0.31% in April.
Separately, the agency reported that the country's exports dropped 22.55% year-on-year in April. Compared to March, exports dropped 1.81%. Meanwhile, imports fell 2.58% month-on-month.
Given the fall in inflation and exports, most economists predict the Bank Indonesia to cut its key rate by at least 25 basis points to 7% when it reviews its monetary policy on Wednesday. The central bank has made a cumulative reduction of 225 basis points in the key interest rate since December 2008.
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