Indonesian Central Bank Benchmark Rate Left Unchanged at 6.5%

October 5, 2009

Bank Indonesia announced no further rate change.  A streak of nine straight monthly cuts had been stopped in September, and analysts expected the same result at this month’s meeting.  The rate had fallen from a peak of 9.5% via cuts of 25 basis points last December, 50 bps each in the first three months of 2009 and reductions of 25 basis points each in April through August.  Monetary officials are more upbeat on economic prospects, revising projected 2009 GDP expansion up to 4.3%.  GDP had risen 4.0% in the year to 2Q09.  CPI inflation, which fell from 11.8% in August 2008 to 2.75% in August 2009, ticked upward by 0.08 percentage points to 2.83% in the year to September.  Officials expect inflation to climb further next year.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


Comments are closed.