Bank Indonesia

Bank Indonesia Rate Cut

September 19, 2019

At Bank Indonesia, a third consecutive 25-basis point cut was announced today in the seven-day reverse repo rate, which becomes 5.25%. Overnight lending and deposit rates were similarly cut by a quarter percentage point. Like the reductions at meetings in July and August, today’s as-expected preemptive action is meant to promote sustained growth with external […] More

Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth

September 19, 2019

Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More

Rate Cut at Bank Indonesia

August 22, 2019

There’s been an unexpected second consecutive cut of Bank Indonesia’s 7-day reverse repo rate, which now becomes 5.50%. Overnight deposit and lending rates were also sliced 25 basis points to 4.75% and 6.25%. Indonesia’s central bank interest rates had been lifted by 175 basis points last year, with the final move in November, in order […] More

Bank Indonesia Eases

July 18, 2019

Bank Indonesia’s key 7-day reverse repo rate was reduced to 5.75% from 6.0%. It’s the first cut since September 2017. The previous changes were a pair of hikes in September and November of 2018. Today’s easing was justified by in-target inflation, lessening pressure on Indonesia’s balance of payments, and the expectation of easier Fed policy […] More

A Quartet of Central Bank Rate Cuts and Netflix Stock Takes a Large Hit

July 18, 2019

Central bank rates were cut today in South Korea, Indonesia, South Africa, and Ukraine. The likelihood that the Fed will ease at the end of this month played a role in each of these actions. All of the reductions were 25-basis point moves. The share price of Netflix has tumbled 10.75% in response to an […] More

Dollar Down on a Perfect Storm of Tensions Fraught with Uncertainty

June 20, 2019

The dollar lost 0.6-0.9% overnight against the euro, Swiss franc, loonie, yuan, kiwi, Australian dollar and Mexican peso. The greenback also has fallen 0.4% relative to the yen and 0.3% vis-a-vis sterling. The list of unknowns keeps lengthening. Iran shot down a U.S. surveillance drone, seemingly bringing another Middle East war closer. From Fed Chairman […] More

Stronger Dollar, Weaker Stocks, and Four Central Bank Meetings

April 25, 2019

The dollar advanced overnight by 0.4% against the yuan and peso, 0.3% relative to the euro, 0.2% versus the Swiss franc, sterling and Australian dollar, and 0.1% vis-a-vis the loonie. One currency against which the dollar fell was the yen, which climbed 0.3%. Share prices dived 2.4% in China to a 3-week low on continuing […] More

Theme of the Day: Slowing Global Growth

March 21, 2019

Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More

Central Bank Rates in Turkey, Indonesia and South Africa Left Unchanged

January 17, 2019

The weaker global inflationary outlook has reduced lessened the risk of imported inflation and capital outflows that might caused by tighter monetary policy in the United States and other industrialized economies. The last central bank interest rate changes in Turkey, Indonesia, and South Africa had been upward, but officials at all of them held policy […] More

Softer Dollar on the First Day After the Fed’s Rate Hike

December 20, 2018

Markets did not take comfort from Wednesday’s FOMC interest rate hike or the upbeat economic prognosis of Chairman Powell. The dollar fell overnight by 0.6% against the euro, 0.5% relative to the yen and  Swiss franc, 0.4% vis-a-vis sterling, 0.3% versus the Australian dollar, and 0.2% against the yuan and loonie. Share prices fared poorly […] More

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