Q3 ca at 0.2 of GDP, vs Q239;s 0.6
Q3 BoP at 1.5 billion deficit, vs Q239;s 7.4 billion deficit

JAKARTA, Nov 21 Reuters Indonesia39;s current account deficit narrowed in the third quarter as demand for exports recovered, the central bank said on Tuesday, with most economists expecting the central bank to leave interest rates unchanged this week as external balances improved.

The Southeast Asia39;s largest economy posted a 0.9 billion deficit in the third quarter, equivalent to 0.2 of gross domestic product, showing a marked improvement from the second quarter, when Indonesia registered its first quarterly deficit in two years.

Bank Indonesia39;s revised data for the second quarter deficit at 2.2 billion, equivalent to 0.6 of GDP, Bank Indonesia39;s revised data showed.

Indonesia39;s monthly trade surpluses have been declining in value this year as prices of its top commodities like coal and palm oil weakened compared to a year ago.

BI noted a recovery in demand for iron and steel exports amid weakening global commodity prices.

The deficit in services also decreased in the third quarter, helped by the tourism sector39;s postpandemic recovery, BI added.

A Reuters poll showed on Tuesday that 27 of 31 economists expected BI to keep its benchmark key interest rate unchanged at 6.00 when the central bank39;s two day policy review wraps up on Thursday. The remaining four predicted a quarterpercentagepoint hike to 6.25.

In October, BI unexpectedly hiked the benchmark…