Bank Indonesia Makes No Change in BI Interest Rate
November 13, 2014
Between June and October of 2013, the BI reference interest rate was lifted twice by 50 basis points and three other times by 25 basis points, reaching 7.5% at the end of the period versus 5.75% at the start. Since that tightening, there have been no further rate modifications, and the rate will remain at 7.5% until Monday’s meeting. Inflation may get an upward bump soon from scaled-back fuel price subsidies, but growth last quarter was the lowest since 2009. A statement from the Board of Governors expresses confidence that inflation will lie within next year’s 3-5% target and notes that the current account narrowed 22% last quarter to equal 3.1% of GDP. November’s Board meeting was the first presided over by the new central bank president, Widodo.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Indonesia
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