Bank Indonesia

Covid-Related Setbacks in European Confidence, a Smaller Chinese Trade Surplus, and Another Day for Barrett Confirmation Hearings

October 13, 2020

Some risk aversion has returned to Europe. In many countries there, lockdown restrictions against Covid-19 have had to be tightened. And data reports out today reflect rising concern. For example, the ZEW expectations index of financial investor confidence toward Germany suffered a big setback this month, dropping to a five-month low of 56.1 from September’s […] More

Equities Fall Even as Central Banks Commit to Maintaining Low Interest Rates

September 17, 2020

Share prices in Asia closed down 1.6% in Hong Kong, 1.2% in South Korea, 0.8% in Taiwan and India, 0.7% in Japan and 0.4% in China and Indonesia. Equities in Europe so far today have dropped 1.2% in Italy, 0.9% in France, 0.8% in Germany and Spain, and 0.5% in the U.K.. The dollar recovered […] More

Dollar’s Value Erodes Gradually Further

August 19, 2020

Overnight the dollar lost another 0.5% against sterling and the kiwi, 0.3% relative to the Australian dollar, 0.2% relative to the peso and yuan, and 0.1% vis-a-vis the yen and loonie. But EUR/USD held steady, and the Swiss franc lost 0.3%. Ten-year sovereign debt yields have settled back three basis points in the U.K., two […] More

Bank Indonesia Policy Rate Cut

July 16, 2020

Monetary officials at a scheduled review at Bank Indonesia agreed to their fourth 25-basis point cut their main interest rate, which at 4.0% reaches its lowest level since 2010. Overnight deposit and lending rates also were sliced by 25 basis points. The lower interest rates are being complemented by an asset purchase program and warranted […] More

Covid-19 Is in Control Rather than Being Under Control

July 16, 2020

The best laid plans of mice and men…. Governments want to reopen economic activity, but a rising curve of new coronavirus cases both around the world and in the United States is setting other imperatives. Over the past 24 hours, there were 230.3k cases world wide, including a record 71.7k in the United States, where […] More

Indonesian Interest Rate Cut

June 18, 2020

Indonesia’s policy interest rate has been reduced 25 basis points to 4.25%. This was the third such drop in 2020 following 25-basis point cuts in February and May. Officials at Bank Indonesia likely was sliced 25 basis points from their overnight deposit and lending rates to create a new corridor that runs from 3.5% to […] More

More Concern than Hope in Thursday’s Marketplace

June 18, 2020

It’s been a busy day for central bank watchers, as monetary policy was reviewed in the U.K., Norway, Switzerland, Brazil, Taiwan, and Indonesia. Released statements and some new data adhere to the baseline view that economic activity contracted even more sharply in the second quarter than the first but that the rate of slide began […] More

Easter Break Over but Covid-19 Pandemic Continues to Dominate Financial Market News

April 14, 2020

Having made the three biggest mistakes in handling the pandemic, the United States has now taken the global lead in both number of cases (30.3% of the worldwide total) and deaths (23,644 or 19.6% of the total). The mistakes were 1) being late to socially distance people, 2) deficient testing to identify asymptomatic carriers of […] More

Another Indonesian Interest Rate Cut

March 19, 2020

Officials at Bank Indonesia reduced the 7-day reverse repo rate by 25 basis points to 4.5%. There was also a 25-basis point cut in February and a full percentage point of reduction in four moves during the second half of last year. Taken together all but 25 basis points of the 175-bp of tightening in […] More

Indonesian Monetary Policy Eased

February 20, 2020

Concern over the potential impact of the coronavirus also elicited an unexpected 25-basis point cut in Indonesia’s 7-day repo rate to 4.75% and complementary cuts of same size in Bank Indonesia’s deposit facility rate and lending facility rate to 4.0% and 5.50%, respectively. The action was characterized as a preemptive step to counteract any virus-related […] More

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