Bank Indonesia

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

Bank Indonesia

January 14, 2016

In the face of persistent softer-than-hoped Indonesian growth in spite of prior macroprudential policy easing, monetary officials cut the BI interest rate by 25 basis points to 7.25%. A prior 25-bp reduction in February 2015 ha reversed a 25-bp rate hike in November 2014, and between June and November of 2013, the interest rate was […] More

Bank Indonesia

December 17, 2015

Monetary authorities in Indonesia also left their key interest rate unchanged after their latest review.  The BI rate has been at 7.5% since a 25-basis point cut in February, and a statement released today reveals that officials are hoping conditions will allow them to ease further next year.  ” Bank Indonesia believes that rooms for […] More

Indonesia’s Reserve Requirement Lowered 50 Basis Points

November 17, 2015

At the November Board of Governors meeting at Bank Indonesia, officials agreed to ease monetary policy via a reduced via a reduction of the primary reserve requirement in Rupiah from 8.0% 7.50.  The BI reference interest rate and the central bank deposit rate were left unchanged at 7.5% and 5.5%, respectively.  These had been cut […] More

Bank Indonesia: Policy Unchanged as Expected

October 15, 2015

The rupiah’s vulnerability continues to impede the central bank’s ability to cut the 7.5% BI interest rate.  From a peak of 7.75% after 200 basis points of increase between June and November of 2014, there has been just one cut in February of this year.  Rupiah depreciation has caused inflation to elevate, with a 6.83% […] More

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