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 rupiah has traded more steadily.  There was one 25-bp rate cut in 2015, one 25-bp rate hike in 2014 and 175 basis points of tightening from June through November of 2013.

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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