Bank Indonesia Reaffirms Monetary Stance
January 19, 2017
Cuts of 25 basis points in the Indonesian seven-day reverse repo rate were undertaken last year in January, February, May, June, September and October. The resulting 4.75% rate level during the past three months was extended at the first policy review of 2017. A released statement asserts that the monetary stance associated with this rate level supports economic recovery and observes continuing global financial market uncertainties. Like many emerging market currencies, the rupiah took a hit from the unexpected U.S. election result but has traded recently in a more stable fashion. Inflation is currently around the low end of the 3-5% target range. Growth is hovering near 5%, and the current account deficit has narrowed.
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Tags: Bank Indonesia