No Change Made in Indonesian Monetary Policy

November 16, 2017

Board officials at this month’s policy meeting left interest rates unchanged. A 4.25% one-week reverse repo rate is flanked y a 3.5% overnight deposit rate and a 5.0% lending rate. After cutting the repo rate by 25 bps each in back-to-back August and September meetings, officials felt the level represents a “neutral” stance, and today’s statement reiterates that present policy should be sufficient to keep inflation inside its 3-5% target range and the current account deficit manageably low while also promote ample economic growth. The statement cites continuing international and domestic risks that are being monitored. A drop of the rupiah since the October meeting is attributed to external causes.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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