Bank Indonesia
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
Bank Indonesia Tightens Stance Further
November 15, 2018
The Indonesian central bank board of governors announced several changes: The 7-day reverse repo rate, deposit facility rate, and lending facility rate were hiked 25 basis points to 6.0%, 5.25%, and 6.75%. The key reverse repo rate has been lifted 7 times since mid-May for a total of 2 percentage points. Reserve requirements were also […] More
Intensifying Global Move Out of Riskier Assets
October 23, 2018
Investors are getting squeamish for political and economic reasons. Turkish President Erdogan again asserted that the Saudi killing of Khashoggi was premeditated. U.S. opinion polls suggest that with just 2 weeks left before the mid-term election, the pendulum is swinging back toward the Republicans, suggesting Trump may continue to control all branches of government. The […] More
Bank Indonesia Tightens Again
September 27, 2018
Amid continuing domestic demand-led growth, a greater-than-desired current account deficit, and and external environment that puts many emerging market currencies and the financial markets at some risks, Bank Indonesia’s Board of Governors sanctioned a fifth hike of the seven-day reverse repo rate from its past six meetings. The rate, which now becomes 5.75%, has now […] More
Indonesia’s Fourth Central Bank Interest Rate Hike Since Mid-May
August 15, 2018
In the face of a wider current account deficit in Indonesia, intensifying global trade tensions, and Turkey’s crisis, which makes many emerging economies more vulnerable, Bank Indonesia’s key 7-day reverse repo rate was lifted by another 25 basis points to 5.50%. The deposit facility and lending facility rates also went up 25 basis points to […] More
Indonesia’s 7-Day Reverse Repo Rate Left Unchanged at 5.25%
July 19, 2018
The Board of Governors at Bank Indonesia took a pause after having hike its interest rate three times in the space of six weeks. This had lifted the key 7-day reverse repo rate to 5.25% as of June 29th from 4.25% prior to an initial hike of 25 bps on May 17. There was also […] More
Third Indonesian Central Bank Interest Rate Hike Since May 17th
June 29, 2018
Bank Indonesia’s Board of Governors today raised the 7-day reverse repo rate by a greater-than-expected 50 basis points to 5.25%. The move followed quarter percentage points hikes on May 17 and May 31 and was accompanied by 50-bp increases in Indonesia’s overnight deposit rate to 4.5% and lending rate to 6.0%. A statement released after […] More
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
