Money in Indonesia
Indonesia - Money
Bank Indonesia keeps rates unchanged in January
At its 22–23 January monetary policy meeting, Bank Indonesia (BI) left the seven-day reverse repo rate unchanged at 5.00%, as had been expected by market analysts. The Bank also left the deposit facility and lending facility rates stable at 4.25% and 5.75% respectively. The decision to hold came after the Bank slashed rates last year in a bid to ward off an economic slowdown.
The decision to stay put was likely influenced by the brighter external environment, after the U.S. and China signed a trade deal in mid-January and global economic indicators showed encouraging signs at the end of last year. As such, BI felt there was no need to continue cutting rates to support the economy.
In its communiqué, the Bank reiterated that it would continue to opt for an “accommodative policy mix”, with Governor Perry Warjiyo commenting after the meeting that there was room for further rate cuts if required. Most FocusEconomics panelists see some further loosening by end-2020.
According to Nicholas Mapa, senior economist at ING: “With global growth only expected to post a modest recovery in 2020, we believe that the BI Governor will cut policy rates as early as the first quarter”.
FocusEconomics Consensus Forecast panelists project the seven-day reverse repo rate to end 2020 at 4.67% and 2021 at 4.69%.
Indonesia - Money Data
|Money (annual variation in %)||11.9||9.0||10.0||8.3||6.3|
5 years of economic forecasts for more than 30 economic indicators.
Indonesia Money Chart
Source: Bank Indonesia.
|Bond Yield||7.10||-0.05 %||Dec 31|
|Exchange Rate||13,883||0.05 %||Jan 01|
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February 11, 2020
In December, retail sales decreased 0.5% year-on-year, contrasting November’s 1.3% expansion and broadly in line with the Central Bank’s initial estimate.
February 5, 2020
The economy expanded 5.0% in the fourth quarter according to recent data released by Statistics Indonesia, matching the third quarter’s expansion.
February 3, 2020
Consumer prices increased 0.39% in January over the prior month, up from December’s 0.34% increase.
February 3, 2020
The manufacturing Purchasing Managers’ Index (PMI) released by IHS Markit decreased from 49.5 in December to 49.3 in January.
January 23, 2020
At its 22–23 January monetary policy meeting, Bank Indonesia (BI) left the seven-day reverse repo rate unchanged at 5.00%, as had been expected by market analysts.