Bank Indonesia

A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets

September 21, 2023

Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More

Mega-Hike in Turkish Central Bank Rate and a Republican Presidential Debate that Changes Little

August 24, 2023

The Central Bank of Turkey’s key interest rate was raised to 25.0% from 17.5%. This biggest move so far followed increases of 250 basis points in July and 650 bps in June and catapults the rate well beyond the prior peak of 19.0% for five months from March 2021 to August 2021. The size of […] More

Softer German Business Climate, Unchanged Indonesian Interest Rate and Day 1 of FOMC Policy Meeting

July 25, 2023

World financial markets were comparatively calm overnight as investors await tomorrow’s FOMC interest rate announcement and press conference. The dollar edged up 0.2% versus the euro and 0.1% against the Canadian dollar overnight, held steady against the Swiss franc, Japanese yen, and New Zealand dollar, and fell 0.6% relative to the Chinese yuan, 0.4% vis-a-vis […] More

Some Surprises But Not All in Same Direction

April 18, 2023

Chinese data reported this Tuesday exceeded expectations, but officials cautioned that solid recovery isn’t yet firmly entrenched. Real GDP last quarter rose 2.2% on quarter, and the prior quarter’s change was revised to an increase of 0.6% from the earlier estimated zero percent quarterly growth rate. Year-on-year growth of 4.5% in 1Q was up from […] More

Awaiting European Central Bank’s Decision Amid Fast Evolving Banking Crisis

March 16, 2023

America’s banking crisis jumped the Atlantic to Credit Suisse on Wednesday, sending Pacific Rim stock markets down today by 1.1% in China, Australia, and China. Hong Kong’s Hang Seng index fell 1.7%, and the Japanese Nikkei fell 0.8%. But news today of Credit Suisse accepting a $54 billion loan from the Swiss National Bank has […] More

Policy Reviews in Rwanda, Indonesia and The Philippines

February 16, 2023

Policy interest rates at the National Bank of Rwanda and Central Bank of The Philippines each were raised today by 50 basis points. For Rwanda, the hike was the fourth over the past year and matched the size of the previous increase three months ago. At 7.0% after the latest increase, the rate is 250 […] More

Another Indonesian Central Bank Rate Hike But Perhaps the Last One

January 19, 2023

From a pandemic low of 3.5% (February 2021 to August 2022), Bank Indonesia’s 7-day reverse repo rate had been raised four times by a half percentage point plus once by 25 bps during the balance of last year. A sixth 25-bp hike announced today lifts such to 5.75%, its highest level in three and a […] More

Contrasting Concerns Among Central Bankers and Financial Market Investors

January 19, 2023

As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More

Turkey and Indonesia

December 22, 2022

The Central Bank of Turkey did not cut its one-week 9.0% repo rate further at this month’s review, adhering to the pause that was  signaled earlier. The key interest rate had been slashed by a combined 500 basis points at the four previous monthly meetings on top of of 500 basis points of reduction in […] More

Indonesian and Filipino Central Bank Rate Hikes

November 17, 2022

Bank Indonesia’s policy interest rate underwent its fourth increase since an initial 25-basis point move in August, rising to 5.25% from 4.75%. Hikes in September and October had also been by a half percentage point. In response to the pandemic, five 25-basis point cuts in 2020 were culminated with a final reduction to 3.50% in […] More