Archive

October 16, 2024
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Indonesia: Policy Rate Held At 6.00% (consensus 6.0%) in Oct-24

  • Bank Indonesia kept the BI-Rate at 6.00%, aligning with market expectations, focusing on inflation control within the 2.5% ±1% target and maintaining Rupiah stability amid global uncertainties.
  • The central bank’s cautious stance reflects concerns about geopolitical risks and global market volatility, while future rate decisions will hinge on inflation trends, exchange rate stability, and economic growth prospects.
  • Ongoing policy measures aim to reinforce external stability with strategic currency interventions and supportive macroprudential policies to bolster domestic growth drivers.

September 18, 2024
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Indonesia Policy Rate 6.00% (consensus 6.25%) in Sep-24

  • Bank Indonesia unexpectedly reduced its policy rate by 25bps to 6.00% amid controlled inflation and the need to stimulate economic growth, particularly domestic demand.
  • The central bank's decision is also influenced by a more benign global financial environment, with declining inflation and monetary easing in advanced economies leading to increased foreign capital inflows.
  • The stability of the Rupiah and healthy capital inflows provide room for further monetary easing, while macroprudential policies aim to support key sectors and boost economic growth.

August 21, 2024
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Indonesia Policy Rate 6.25% (consensus 6.25%) in Aug-24

  • Bank Indonesia’s decision to keep the BI-Rate steady at 6.25% aligns with expectations, reinforcing a pro-stability stance to manage inflation and Rupiah stability amid global uncertainties.
  • The easing of global financial market uncertainty amid solid domestic growth influences interest rate decisions that focus on balancing inflation control and sustaining economic momentum.
  • Bank Indonesia’s commitment to Rupiah stabilization and maintaining inflation within the target range remains central to its monetary policy, supported by effective interventions and optimized monetary operations.

July 17, 2024
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Indonesia Policy Rate 6.25% (consensus 6.25%) in Jul-24

  • Bank Indonesia kept its policy at 6.25%, aligning with market expectations to ensure inflation control and Rupiah stabilization amid ongoing global financial uncertainties.
  • Future interest rate decisions will be influenced by persistent global financial market uncertainty, particularly the US monetary policy direction, and strong domestic economic growth driven by robust consumption and investment.
  • Ensuring Rupiah stability and maintaining inflation within the 2.5 ± 1% target range remain central to Bank Indonesia’s strategy, supported by a mix of pro-market monetary operations, macroprudential policies, and digitalization efforts to foster economic resilience and growth.