Indonesia’s central bank is expected to resume cutting interest rates after holding the benchmark rate steady last week. Economists predict a quarter-point reduction to 5.5% by the end of Q2 2025 and another 25 bps reduction later in the year. The forecast for consumer price inflation has been adjusted to 1.15% in Q1, with an expected full-year inflation rate of 2.1%. The bank maintained the rate due to concerns over a weakening rupiah and stock market volatility amid broader emerging market worries and domestic fiscal issues.