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