Bank Indonesia
October 19, 2023
Officials at Bank Indonesia sprung a surprise 25-basis point interest rate hike on investors to 6.0%. There had been just one previous increase in 2023, also of 25 basis points way back in January that had at the time seemed to culminate 200 basis points of tightening during 2022. Indonesian consumer price inflation is currently at 2.3%, well within the 2-4% target range. Today’s decision is intended as a preventive action against additional rupiah depreciation in view of the Mideast geopolitical turmoil and insofar as the rupiah is already back around levels seen early in the pandemic.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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