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