Indonesia
No Change in Indonesian Key Interest Rate
December 3, 2010
The benchmark interest rate of Bank Indonesia has been at 6.5% since a 25-basis point cut in August 2009, which culminated a nine-move, 300 basis point reduction begun in December 2008. Bank Indonesia has not conformed to Asian norms. GDP was 5.8% higher than a year earlier last quarter, and CPI inflation accelerated by a […] More
Peripheral Bond Premiums Sharply Lower; It’s Jobs Data Day in the U.S.
December 3, 2010
The dollar is mostly lower, with losses of 0.5% against the Australian dollar, 0.3% versus the yen and sterling, and 0.2% against the Canadian dollar, kiwi, and euro. Dollar-Swiss is an exception, rising 0.1%, and the yuan is steady against the greenback. In the Pacific Rim, equities rose 0.7% in the Philippines, 0.5% in Pakistan […] More
No Change in Indonesian Interest Rate
November 4, 2010
Indonesia does not rank among those Asian countries where central banks have begun to raise interest rates. Bank Indonesia kept it benchmark policy interest rate at 6.5%, the level since a 25-basis point cut made fifteen months ago. Consecutive monthly reduction from December 2008 until then had cut the key rate by 300 basis points […] More
Indonesian Monetary Policy Kept Steady as Expected
October 5, 2010
The Bank Rate of Bank Indonesia was left at 6.5%. This was the 14th consecutive monthly meeting to leave policy unchanged. The previous nine meetings between December 2008 and August 2009 all resulted in a reduction of the rate, the sum of which amounted to 300 basis points from a cyclical crest of 9.5%. A […] More
Reserve Requirements Hiked Three Percentage Points to 8% in Indonesia
September 3, 2010
Bank Indonesia released a statement after surprising analysts with an increase to 8% from 5% in in reserve requirements, which could herald interest rate tightening before much more time elapses. The benchmark rate was not changed yet, however, and will remain at 6.5% where it’s been since a 25-basis point cut in August 2009. That […] More
Little Change in the Dollar Ahead of U.S. Jobs Report
September 3, 2010
The dollar edged up 0.2% against the yen and the Swiss franc and by 0.1% versus the Australian and Canadian dollars. The dollar fell 0.3% against the kiwi and by 0.1% against the euro. The greenback is unchanged against the pound and yuan. Market consensus calls for U.S. non-farm payrolls to drop around 100K, but […] More
Bank of Indonesia Leaves Key Interest Rate at 6.5% But Drops a Clue of Concern
August 4, 2010
An unchanged central bank in Indonesia was as expected and perpetuates the stance that was reached in August 2009 following six cuts of 25 basis points and three reductions of 50 bps from a peak of 9.5% prior to December 2008. Unlike some Asian central banks, the authorities at Bank Indonesia have given, up to […] More
Bank Indonesia Kept Benchmark Interest Rate at 6.5%
June 3, 2010
It came as no surprise that Indonesia’s key interest rate was held steady. It’s been at 6.5% since August 2009 after nine consecutive monthly reductions totaling 300 basis points. A statement from Bank Indonesia dismisses the rise of CPI inflation to 4.2% in May from 3.9% in April as being cause by volatile factors and […] More
Bank Indonesia Benchmark Interest Rate Holding at 6.5%
May 5, 2010
Nine consecutive monthly rate reductions from December 2008 to August 2009 totaled 300 basis points, and now nine months have passed without a change in the rate’s 6.5% level. A released statement after today’s monthly meeting speaks optimistically about global, regional, and Indonesian growth prospects but gives no hint of a readiness to start raising […] More
Bank Indonesia Leaves Monetary Policy Unchanged As Expected
April 6, 2010
Bank Indonesia released another fairly dovish statement, keeping the BI benchmark rate unchanged at 6.5% following an eighth straight meeting and indicating that these steady low rates can be maintained for at least a few more months. Officials are upbeat about growth, nudging up the projected range to 5.5-6% this year and 6.0-6.5% in 2011 […] More
