FOREX TradingCharts.com

Financial News: Indonesia Cuts Interest Rates

Indonesia Cuts Interest Rates

02/18/2021 - 04:59:00 (RTTNews)

(RTTNews) - Indonesia's central bank cut interest rates on Thursday, to support the economic recovery as policymakers expect inflation to remain low and the rupiah exchange rate to stabilize over the coming months. The Board of Governors decided to cut the seven-day reverse repo rate by 25 basis points to 3.50 percent, the Bank Indonesia said. The decision was in line with economists' expectations. The previous change in the rate was a quarter-point reduction in November. The deposit facility rate was lowered to 2.75 percent from 2.50 percent and the lending rate to 4.25 percent from 4.50 percent. "This decision is consistent with the forecast for low inflation and maintained stability of the Rupiah exchange rate, as well as a follow-up step to stimulate momentum for national economic recovery," the bank said. The bank expects the vaccination drive against the coronavirus pandemic to boost growth in the coming months. BI lowered its growth forecast for this year to 4.3-5.3 percent from 4.8-5.8 percent predicted in December. "We suspect further easing is likely over the coming months given the poor outlook for the economy," Capital Economics economist Gareth Leather said. The economy had shrunk 2.19 percent year-on-year in the fourth quarter of 2020. Policymakers assessed that the strengthening of the Rupiah exchange rate has the potential to continue in line with its fundamentally undervalued level.

Leather said the performance of the rupiah will be a key determinant of the pace and timing of the central bank's next move. The Indonesian economy remains vulnerable to sudden falls in the rupiah, thanks to A high level of foreign currency debt, the economist said. That said, the currency has continued to hold up well against the US dollar during January. "Provided this strong performance is sustained, further cuts are likely in the first half of the year," Leather added.

The bank predicted that inflation is set to remain within the target of 3.0 percent ± 1 percent. The central bank also announced a host of policy measures to ensure financial stability. That included a relaxation in provisions for vehicle financing and home loans, trade and investment promotion measures for the tourism and manufacturing sectors, and support measures for small businesses.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Japan Industrial Production Rises 4.2% In January (29 min(s), 32 sec(s) ago)
(RTTNews) - Industrial output in Japan was up a seasonally adjusted 4.2 percent on month in Januar ...Full Story»

Japan Retail Sales Slip 0.5% In January (54 min(s), 32 sec(s) ago)
(RTTNews) - The value of retail sales in Japan was down a seasonally adjusted 0.5 percent on month ...Full Story»

Japan Industrial Output Climbs 4.2% In January (01 hr(s), 04 min(s), 32 sec(s) ago)
(RTTNews) - Industrial production in Japan was up a seasonally adjusted 4.2 percent on month in Ja ...Full Story»

Tokyo Inflation Slides 0.3% On Year In February (01 hr(s), 29 min(s), 32 sec(s) ago)
(RTTNews) - Overall consumer prices in the Tokyo region of Japan - considered a leading indicator ...Full Story»

Japan Data On Tap For Friday (02 hr(s), 39 min(s), 32 sec(s) ago)
(RTTNews) - Japan is scheduled to release a batch of data on Friday, headlining a busy day for Asi ...Full Story»

New Zealand Has NZ$626 Million Trade Shortfall (03 hr(s), 13 min(s), 32 sec(s) ago)
(RTTNews) - New Zealand had a merchandise trade deficit of NZ$626 million in January, Statistics N ...Full Story»

Portugal Consumer Confidence Weakens In February (09 hr(s), 38 min(s), 32 sec(s) ago)
(RTTNews) - Portugal's consumer confidence deteriorated in February after strengthening in the ...Full Story»

U.S. Pending Home Sales Unexpectedly Show Steep Drop In January (09 hr(s), 54 min(s), 32 sec(s) ago)
(RTTNews) - With inventory constraints continuing to hold back prospective buyers, the National As ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Japan Industrial Production Rises 4.2% In January

02/25/2021 - 19:40 PM (RTTNews)
(RTTNews) - Industrial output in Japan was up a seasonally adjusted 4.2 percent on month in Januar ...Full Story>>

Japan Retail Sales Slip 0.5% In January

02/25/2021 - 19:15 PM (RTTNews)
(RTTNews) - The value of retail sales in Japan was down a seasonally adjusted 0.5 percent on month ...Full Story>>

Japan Industrial Output Climbs 4.2% In January

02/25/2021 - 19:05 PM (RTTNews)
(RTTNews) - Industrial production in Japan was up a seasonally adjusted 4.2 percent on month in Ja ...Full Story>>

Tokyo Inflation Slides 0.3% On Year In February

02/25/2021 - 18:40 PM (RTTNews)
(RTTNews) - Overall consumer prices in the Tokyo region of Japan - considered a leading indicator ...Full Story>>

Japan Data On Tap For Friday

02/25/2021 - 17:30 PM (RTTNews)
(RTTNews) - Japan is scheduled to release a batch of data on Friday, headlining a busy day for Asi ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.