Bank Indonesia

Second Indonesian Central Bank Rate Hike Within Two Weeks

May 30, 2018

In follow-up to the 25-basis point tightening done on May 17th, Bank Indonesia’s Board lifted the 7-day reverse repo rate by 25 basis points to 4.75% after an unscheduled meeting. The deposit facility and lending facility rates were also raised by 25 basis points to 4.0% and 5.5%. Although the economy is performing soundly, a […] More

Bank Indonesia Tightens Monetary Policy For First Time Since Late 2014

May 17, 2018

Like their Brazilian colleagues late yesterday, monetary policymakers in Indonesia were compelled by recent foreign exchange market developments, namely the strength of the dollar and depreciation of emerging market currencies like the real and rupiah, to shift policy gears. In Brazil’s case, a long string of interest rate cuts was ended, and in the Indonesian […] More

Bank Indonesia

March 22, 2018

Indonesia’s seven-day reverse repo rate was last changed in September 2017 when such was sliced 25 basis points to 4.25%. The March monthly review kept it there as well as retaining the deposit facility rate and lending facility rate at 3.5% and 5.0%, respectively. The repo rate was also reduced by 25 bps in June  […] More

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