Credit: REUTERS/WILLY KURNIAWANreuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=IDCPI%3DECI poll data
Oct inflation seen at +3.25% y/y, vs +3.39% in Sept
Oct core inflation seen at +3.31% y/y, vs +3.32% in Sept
Data due around 0200 GMT on Friday, Nov. 1
JAKARTA, Oct 30 (Reuters) - Indonesia's annual inflation rate is expected to be slightly slower in October from a month earlier and stay within the target range of the archipelago's central bank, a Reuters poll showed on Wednesday.
The median forecast by 12 economists for October's annual inflation is 3.25%, cooling from 3.39% in September.
Bank Indonesia (BI) Governor Perry Warjiyo on Friday gave a forecast of 3.19% for October inflation based on price movements as of the fourth week of the month, supporting the central bank's view that the 2019 inflation rate would stay below the midpoint of its 2.5%-4.5% target range.
The poll predicted the annual core inflation rate, which excludes government-controlled and volatile food prices, to come in at 3.31% in October, based on the median forecast of seven analysts, and nearly unchanged from September's 3.32% rate.
"Going forward, we see that inflation rate will remain stable," said Andry Asmoro, chief economist at Bank Mandiri, the country's second-largest bank by asset. "This supports BI's agenda to keep having an accommodative monetary policy this year."
BI had taken advantage of manageable inflation and relatively stable rupiah to unwind some of its 2018 rate hikes. It has now cut interest rates four times since July, bringing the benchmark IDCBRR=ECI down by 100 basis points (bps) to 5.00%.
Bank Mandiri expects BI to make another 25-bp rate cut before the end of the year, Asmoro said.
(Polling by Nilufar Rizki and Tabita Diela; Writing by Gayatri Suroyo; Editing by Rashmi Aich)
((tabita.diela@thomsonreuters.com; +622129927621;))
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