At its 11 October monetary policy meeting, the Central Bank cut the benchmark interest rate by 25 basis points to 6.50%. The move constituted the first rate change since February, when the Bank raised interest rates by 25 bps. The decision surprised the market, which had expected the Bank to remain neutral, and might prompt other central banks in the region to follow suit and embrace a more accommodative approach amid the deterioration in global economic and financial conditions. The pre-emptive cut in interest rates aims at shielding the domestic economy from global headwinds. The rate cut follows similar moves from central banks in other emerging market economies such as Brazil and Turkey, which have already cut the policy rates and shifted their focus from battling inflation to buttressing GDP growth. Nevertheless, although inflation in Indonesia currently remains tame, upside risks to inflation persist, particularly given the anticipated rise in food prices across the region.
Indonesia Monetary Policy
Central Bank cuts interest rates to 6.50%
October 11, 2011
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Indonesia Economic News
October 20, 2016
At its 19–20 October monetary policy meeting, Bank Indonesia decided to cut the BI seven-day Reverse Repo rate (BI seven-day RR rate) from 5.00% to 4.75%.
October 17, 2016
Indonesia’s trade surplus rose in September to a 14-month high as imports deteriorated.
October 12, 2016
Retail sales in August expanded 14.4% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS).
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in August to 50.9 in September, according to a release provided by Nikkei and IHS Markit.