Bank Indonesia
Coronavirus Spreading and Three Central Banks Review Monetary Policy
January 23, 2020
Share prices slumped another 2.8% in China, 1.5% in Hong Kong, 1.0% in Japan, 0.9% in South Korea, and 0.6% in Australia and Singapore as the deadly pneumonia-like disease centered in Asia claimed more victims. Share prices in Europe are so far today down 0.4% in Germany and 0.3% in the U.K. and Switzerland but […] More
Thursday Rundown of Overnight News, Data Reports, and Central Bank Decisions
December 19, 2019
President Trump has been impeached by a House of Representatives partisan vote of 229-197. He will get a trial in the senate. Market movements today are mostly unremarkable. Sovereign debt yields are up. Equities are down a bit in Europe but started on an up note in the United States. New Zealand’s stock market rallied […] More
Bank Indonesia Rate Cut
September 19, 2019
At Bank Indonesia, a third consecutive 25-basis point cut was announced today in the seven-day reverse repo rate, which becomes 5.25%. Overnight lending and deposit rates were similarly cut by a quarter percentage point. Like the reductions at meetings in July and August, today’s as-expected preemptive action is meant to promote sustained growth with external […] More
Eight More Central Bank Meetings, a U.S. Current Account Report, and Downgraded Global Growth
September 19, 2019
Dollar movement overnight was mixed, with gains against the Australian dollar, kiwi, sterling, and yuan but losses relative to the yen, Swiss franc, euro, loonie and peso. The 10-year U.S. Treasury and Japanese JGB yields fell three basis points. Their German and British counterparts are respective a basis point higher and a basis point lower. […] More
Rate Cut at Bank Indonesia
August 22, 2019
There’s been an unexpected second consecutive cut of Bank Indonesia’s 7-day reverse repo rate, which now becomes 5.50%. Overnight deposit and lending rates were also sliced 25 basis points to 4.75% and 6.25%. Indonesia’s central bank interest rates had been lifted by 175 basis points last year, with the final move in November, in order […] More
Bank Indonesia Eases
July 18, 2019
Bank Indonesia’s key 7-day reverse repo rate was reduced to 5.75% from 6.0%. It’s the first cut since September 2017. The previous changes were a pair of hikes in September and November of 2018. Today’s easing was justified by in-target inflation, lessening pressure on Indonesia’s balance of payments, and the expectation of easier Fed policy […] More
A Quartet of Central Bank Rate Cuts and Netflix Stock Takes a Large Hit
July 18, 2019
Central bank rates were cut today in South Korea, Indonesia, South Africa, and Ukraine. The likelihood that the Fed will ease at the end of this month played a role in each of these actions. All of the reductions were 25-basis point moves. The share price of Netflix has tumbled 10.75% in response to an […] More
Dollar Down on a Perfect Storm of Tensions Fraught with Uncertainty
June 20, 2019
The dollar lost 0.6-0.9% overnight against the euro, Swiss franc, loonie, yuan, kiwi, Australian dollar and Mexican peso. The greenback also has fallen 0.4% relative to the yen and 0.3% vis-a-vis sterling. The list of unknowns keeps lengthening. Iran shot down a U.S. surveillance drone, seemingly bringing another Middle East war closer. From Fed Chairman […] More
Stronger Dollar, Weaker Stocks, and Four Central Bank Meetings
April 25, 2019
The dollar advanced overnight by 0.4% against the yuan and peso, 0.3% relative to the euro, 0.2% versus the Swiss franc, sterling and Australian dollar, and 0.1% vis-a-vis the loonie. One currency against which the dollar fell was the yen, which climbed 0.3%. Share prices dived 2.4% in China to a 3-week low on continuing […] More
Theme of the Day: Slowing Global Growth
March 21, 2019
Since the Federal Reserve’s policy decision and press conference yesterday, there’s been a parade of other central bank policy meetings. Although only Norway changed its policy rate — a hike no less — the running theme in the many central bank statements is that the slowdown in global demand late last year is continuing and […] More
