Indonesia’s Central Bank Governor: Weaker U.S. Inflation Driving Fed Rate Cut Expectations

According to ChainCatcher, the Governor of Bank Indonesia said that easing inflationary pressures in the United States have strengthened market expectations for an upcoming Federal Reserve interest rate cut.The governor emphasized that U.S. inflation trends are playing a key role in shaping global monetary policy sentiment, noting that a Fed rate cut could influence capital flows, emerging market currencies, and Indonesia’s own monetary stance.The remarks follow recent signals from the Fed that policymakers remain data-dependent, with markets increasingly betting on a shift toward easing policy as inflation cools.