Bank Indonesia

Bank Indonesia Keeps Policy Stance on Hold

February 15, 2018

The 7-day reverse repo rate, the deposit rate and the overnight lending facility rate were retained at 4.25%, 3.5%, and 5.0%, respectively, at the February monthly meeting of Bank Indonesia’s Board of Governors. A statement was released that reiterates the main points of January’s statement. Inflation lies with and is expected to stay in the […] More

Bank Indonesia

January 18, 2018

Indonesia’s seven-day repo rate of 4.25% since last September was again left unchanged. A released statement observes a more resilient domestic economy, including a sounder current account, low inflation supported by positive supply and demand factors and no major external pressures, ample capital inflows, a stable currency, and record reserves.  The key central bank interest rate […] More

Bank Indonesia

December 14, 2017

Indonesia’s seven-day reverse repo rat has been at 4.25% since back-to-back 25-basis point cuts in August and September. This level was maintained at the final monetary policy review of 2017, along with a 3.5% deposit rate and a 5.0% overnight lending rate. Officials released at statement that calls Indonesia’s recovery “gradual and uneven” and “projects […] More

Bank Indonesia

October 19, 2017

Indonesia’s 4.25% seven-day reverse repo rate, which had been cut by 25 basis points each at successive previous reviews in August and September, was this time left unchanged, as too were the 3.5%overnight deposit facility rate and 5.0% lending facility rate. In September, officials had indicated that the main interest rate had reached a “neutral” […] More

Bank Indonesia

September 22, 2017

A follow-up cut in the seven-day reverse repo rate to 4.25% was announced today. An earlier cut a month ago of 25 basis points had been the first reduction since the sixth such move in 2016 was made in October. While easing today, Indonesian monetary officials claimed that their rate had now fallen to their […] More

An Unexpected Interest Rate Cut by Bank Indonesia

August 22, 2017

Indonesia became the latest central bank from an emerging market economy to cut its interest rates. The previous six changes, each like today’s move a cut of 25 basis points, were implemented from January to October in 2016. Then easing was stopped because officials worried that Fed rate normalization would expose the rupiah and Indonesian […] More

No Change Made in Indonesian Monetary Policy at Monthly Review

May 18, 2017

Bank Indonesia’s seven-day reverse repo rate has been at 4.75% since its sixth 25-basis point reduction of 2016 was implemented last October. This key rate will continue to be flanked symmetrically by a 4.0% overnight deposit facility rate and a 5.5% lending facility rate. Officials released a statement after their review defending the current stance and […] More

No Change in Indonesia Monetary Policy

April 20, 2017

As analysts expected, Bank Indonesia’s seven-day reverse repo rate, the main policy benchmark, was left at 4.75%, the level since a sixth and final 25-basis point reduction made during 2016. This occurred last October and followed similar moves in January, February, May, June, and September. Monetary officials also left their overnight deposit and lending rates […] More

Bank Indonesia

March 16, 2017

The reverse repo rate, deposit rate, and central bank lending facility rates were held steady as expected in Indonesia at 4.75%, 4.0%, and 5.5% as expected. A released statement projects continuing growth improvement but amid a number of risks that bear watching. Officials during February observed contained inflation, a trade surplus and a rise in the […] More

Bank Indonesia

February 16, 2017

The BI Board kept its seven-day reverse repo rate at 4.75%. It was cut last year six times between January and October, each time by a quarter percentage point. A statement released today projects 5.0-5.4% growth in 2017, an improved balance of payments last quarter and in-target inflation (3-5%) during the forecast horizon. Indonesia has […] More