MNI BI December Preview: BI Holds, Rupiah Stability Key

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We see the Bank Indonesia on Hold at its December meeting in what is a close call given:  

• USDIDR has traded within a tight range since the last Central Bank meeting as per BI's focus.
• The transmission mechanism needs more time to allow the prior cuts to flow through to broader economy.
• Activity data has improved with PMIs highest since February.
• Last week's decision by the FOMC to cut rates reduces any perceived urgency to cut.