Bank Indonesia

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

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