Bank Indonesia

Bank Indonesia Leaves Key 7-Day Reverse Repo Unchanged at 5.25%

August 19, 2016

A new monetary policy framework has been launched, but the main interest rate has been left steady at 5.25%. The 7-Day reverse repo of 5.25% replaces the function of the BI reference rate that had been at 6.5% after four 25-bp cuts earlier this year. The reverse repo rate will be flanked symmetrically by a […] More

Dollar Up But Stocks Lower

August 19, 2016

The dollar rose overnight by 0.9% against the Aussie dollar, 0.4% relative to the loonie, yuan and sterling, 0.3% versus the yen and Swiss franc and 0.2% against the kiwi and euro. In European stock market action, share prices have dropped 2.0% in Italy, 1.2% in Spain, 1.0% in Greece, 0.8% in Switzerland, 0.7% in […] More

Bank Indonesia’s Policy Rates Left the Same

July 21, 2016

The main BI interest rate had be cut in four steps, most recently in June, from 7.5% to 6.5% earlier this year, and a statement released after this month’s decision not to ease further now suggests that more rate cuts lie ahead.  As of next month, the operative policy rate will switch to the seven-day […] More

A 25-Basis Point Central Bank Rate Cut in Indonesia

June 16, 2016

Bank Indonesia cut the BI Rate, which had been reduced by 25 basis points each in February 2015 and January, February and March of this year, was cut to 6.5% from 6.75%.  A released statement cited ” low inflation, a narrower current account deficit and relatively stable exchange rates” and opined that “the new policy […] More

South African Monetary Tightening Paused

May 19, 2016

The South African Reserve Bank’s repo rate had been raised by a percentage point in three moves between January 2014 and July 2015 and lifted by another 100 basis points in three successive monetary policy committee meetings in November 2015, January 2016 and, most recently, March 17, 2016.  Today’s decision to leave the repo rate […] More

Bank Indonesia

May 19, 2016

A 6.75% BI has been retained.  This was a second straight month without a change in the monetary stance following 25-bp cuts in each of the first three months of 2016.  The statement released today suggests that additional cuts could occur.  Inflation is within the 1-4% target.  The current account deficit is shrinking, and the […] More

Bank Indonesia

April 21, 2016

Having implemented 25-basis point cuts in the BI rate in each month of last quarter, Indonesia’s central bank board of governors kept the rate unchanged at 6.75% at its April monthly meeting.  There was also an earlier 25-basis point cut in February 2015, so the current level is a full percentage point lower that the […] More

A Focus on Central Banks, Commodities and China

April 21, 2016

The ECB just announced  decisions from today’s third Governing Council meeting of the year.  No further rate changes were enacted.  At the prior meeting on March 10, the refinancing rate was sliced 5 basis points to 0.0%, the deposit rate was moved 10 basis points more deeply into the red to -0.40%, and the marginal […] More

Bank Indonesia Interest Rate Cut 25 Basis Points in Third Straight Month

March 17, 2016

The BI Rate has been cut to 6.75% from 7.0%.  Reductions of 25 basis points were also implemented in January 2015 and each of the first two months of 2016.  The central bank’s deposit and lending facility rates were likewise cut 25 bps to 4.75% and 7.25%.  The Board of Governors released a statement that […] More

Another Indonesian Central Bank Interest Rate Cut

February 18, 2016

Policymakers at Bank Indonesia reduced the BI rate, the lending facility rate and the deposit facility rate by 25 basis points each to 7.0%, 7.5% and 5.0%.  This was the third decline in a year, after similarly-sized moves in February 2015 and January 2016.  Officials also cut the primary reserve requirement by a full percentage […] More