At its 12 January monetary policy meeting, the Central Bank kept the benchmark interest rate at a record low of 6.00% for a second month in a row. The decision was in line with market expectations. The Bank stated that ?the global economic and financial performance is still weakening along with the protracted crisis in Europe? and predicts that it will lead to a ?decrease in emerging markets' exports?. Nevertheless, monetary authorities expect the resilient growth seen recently in Indonesia to continue throughout 2012, and to settle within its 6.3%-6.7% forecast. They also estimate that overall economic growth in 2011 reached a robust 6.5%. Moreover, the Bank stated that the ?current BI rate is still consistent with inflation targets, financial system stability, and remains conducive to propel domestic economic expansion amidst global economic uncertainty.? Currently, the inflation target for both 2012 and 2013 is 4.5% 1%. However, upside risks to inflation remain, particularly stemming from the continued weakening of the rupiah, as well as the forthcoming limitation of fuel price subsidies by the government in April. More recently, on 17 January, Bank Indonesia widened the lower range of its interbank lending rate from 150 basis points to 200 basis points, which aims at providing more liquidity to the market. The move is interpreted by the analysts as a de facto easing of its monetary policy.
Indonesia Monetary Policy
Central Bank maintains interest rate at 6.00%
January 12, 2012
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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
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.
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.