Indonesian monetary policy
No Change in the BI Central Bank Interest Rate
August 14, 2014
Indonesia’s key central bank interest rate will stay at 7.5%, its level since a 25-basis point hike last October that culminated 175 basis points of tightening compressed into a four-month period, which was orchestrated to reduce inflation, support the rupiah and diminish Indonesia’s large current account deficit that’s running at between 3.0 and 3.5% of […] More
Indonesia Gets Fifth Central Bank Interest Rate Hike Since June
November 12, 2013
The Board of Governors of Bank Indonesia hiked the BI interest rate to 7.5% from 7.25% in a move that surprised many analysts. This increased followed hikes of 25 basis points in June, 50 bps in July and August, 25 bps in September but no change in October. The key interest rate has thus climbed […] More
Bank Indonesia Makes an Unscheduled Tightening of Policy
August 29, 2013
Two weeks after a scheduled meeting that left the key BI policy rate at 6.5%, the Board of Governors convened for an unscheduled meeting, after which a package of measures including a BI rate hike to 7.0%, a 50-basis point deposit rate hike to 5.25%, and a 25-bp lending rate increase to 7.0% was revealed. […] More
Bank Indonesia
June 13, 2013
A day after raising the overnight deposit rate to 4.25% from 4.0%, officials at Indonesia’s central bank took the more significant step of also lifting the main Bank Indonesia Rate to 6.0% from 5.75%, its level since a 25-basis point cut in February 2012. That reduction had been the third one in a span of […] More
Bank Indonesia
November 8, 2012
Following the monthly policy meeting, central bank officials in Indonesia retained a 5.75% reference rate and released an upbeat statement that observed An improved current account, whose deficit has fallen to 2.4% of GDP in 3Q12 from 3.5% in the second quarter. Contained inflation that is likely to hover near the center of its 3.5-5.5% […] More
