Bank Indonesia Keeps Policy Stance on Hold

February 15, 2018

The 7-day reverse repo rate, the deposit rate and the overnight lending facility rate were retained at 4.25%, 3.5%, and 5.0%, respectively, at the February monthly meeting of Bank Indonesia’s Board of Governors. A statement was released that reiterates the main points of January’s statement. Inflation lies with and is expected to stay in the 2.5-4.5% target range. Expected inflation is anchored. Indonesia’s current account deficit is manageable, and the rupiah rebounded last month after some erosion last quarter. Faster and more balanced economic growth is foreseen this year than last. The 7-day repo rate was reduced six times in 2016 and, more recently, last August and September. All these cuts were by 25 basis points.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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