Bank Indonesia

No Change in Indonesia Monetary Policy

April 20, 2017

As analysts expected, Bank Indonesia’s seven-day reverse repo rate, the main policy benchmark, was left at 4.75%, the level since a sixth and final 25-basis point reduction made during 2016. This occurred last October and followed similar moves in January, February, May, June, and September. Monetary officials also left their overnight deposit and lending rates […] More

Bank Indonesia

March 16, 2017

The reverse repo rate, deposit rate, and central bank lending facility rates were held steady as expected in Indonesia at 4.75%, 4.0%, and 5.5% as expected. A released statement¬†projects continuing growth improvement but amid a number of risks that bear watching. Officials during February observed contained inflation, a trade surplus and a rise in the […] More

Bank Indonesia

February 16, 2017

The BI Board kept its seven-day reverse repo rate at 4.75%. It was cut last year six times between January and October, each time by a quarter percentage point. A statement released today projects 5.0-5.4% growth in 2017, an improved balance of payments last quarter and in-target inflation (3-5%) during the forecast horizon. Indonesia has […] More

Bank Indonesia Reaffirms Monetary Stance

January 19, 2017

Cuts of 25 basis points in the Indonesian seven-day reverse repo rate were undertaken last year in January, February, May, June, September and October. The resulting 4.75% rate level during the past three months was extended at the first policy review of 2017. A released statement asserts that the monetary stance associated with this rate […] More

Bank Indonesia

December 15, 2016

From 6.25% at the start of 2016, the BI seven-day reverse repo rate was cut by 25 basis points each in January, February, March, June, September and October to the current level of 4.75%, which was held steady at this month’s meeting. The next meeting will be in February, as January is always skipped. Today’s […] More

Bank Indonesia Officials Strike Note of Caution

November 17, 2016

Earlier in 2016, the Bank Indonesia Board of Governors had sanctioned 25-basis point interest rate cuts in each month of the first quarter plus June, September and October. Coming into this month’s meeting the rate stood at 4.75%, still well above inflation and amid continuing shrinkage of Indonesia’s current account deficit. Nonetheless, officials opted for […] More

Bank Indonesia

September 22, 2016

The 7-day reverse repo rate, which has replaced the BI rate as the main operative central bank interest rate, was sliced further to 5.0% at this month’s meeting. According to a released statement, the action coordinates with the government’s efforts to buttress economic growth that’s been somewhat lower than hoped and assumed. Inflation at 2.8% […] More

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