Indonesian Monetary Policy Eased
February 20, 2020
Concern over the potential impact of the coronavirus also elicited an unexpected 25-basis point cut in Indonesia’s 7-day repo rate to 4.75% and complementary cuts of same size in Bank Indonesia’s deposit facility rate and lending facility rate to 4.0% and 5.50%, respectively. The action was characterized as a preemptive step to counteract any virus-related drag on tourism, trade, and business spending. “Moving forward, efforts to contain Covid-19 demand vigilance due to the potential impact on economic growth, trade volume and international commodity prices as well as capital flows to and from developing countries, including Indonesia.”
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Indonesia
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