FOREX TradingCharts.com

Financial News: Indonesia Keeps Rates On Hold

Indonesia Keeps Rates On Hold

08/19/2020 - 05:37:00 (RTTNews)

(RTTNews) - Indonesia's central bank left its key interest rate unchanged after lowering it four times this year, as the rupiah remained weak amid the sharp economic contraction.

The Board of Governors of Bank Indonesia decided to retain the BI 7-day reverse repo rate at 4.00 percent.

The overnight deposit facility rate and the lending facility rate were maintained at 3.25 percent and 4.75 percent, respectively.

The bank said the decision was consistent with the need to maintain external stability, amidst predicted inflation to remain low. The central bank maintained its inflation target at 2-4 percent for 2020.

In order to support economic recovery, the bank had reduced the rates four times so far this year.

The bank said it will continue to strengthen the monetary expansion with the acceleration of the fiscal stimulus to underpin economic recovery. It appears the main reason BI didn't cut rates today is weakness of the rupiah, Alex Holmes, an economist at Capital Economics, said.

Further easing is likely over the coming months, but the pace of future rate cuts will be gradual and will be determined by the performance of the currency, the economist noted.

Official data released early this month showed that the Southeast Asia's biggest economy contracted at the fastest pace since the Asian financial crisis due to the coronavirus containment measures.

Gross domestic product fell 5.32 percent year-on-year in the second quarter. The government forecast GDP to log -0.4 percent to 1 percent growth in the full year of 2020.

The central bank expects the current account deficit to remain below 1.5 percent of GDP this year, thereby supporting the resilience of the external sector amid the weak global economic outlook.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Japan Manufacturing PMI Inches Higher In September - Jibun Bank (02 hr(s), 21 min(s), 13 sec(s) ago)
(RTTNews) - The manufacturing sector in Japan continued to contract in September, albeit at a bare ...Full Story»

New Zealand Interest Rate Decision On Tap For Wednesday (05 hr(s), 08 min(s), 13 sec(s) ago)
(RTTNews) - The Reserve Bank of New Zealand will wrap up its monetary policy meeting on Wednesday ...Full Story»

Eurozone Consumer Confidence Improves More Than Expected (11 hr(s), 10 min(s), 13 sec(s) ago)
(RTTNews) - Eurozone consumer confidence rose improved more-than-expected in September to its high ...Full Story»

U.S. Existing Home Sales Jump To Nearly 14-Year High In August (11 hr(s), 43 min(s), 13 sec(s) ago)
(RTTNews) - Existing home sales in the U.S. climbed to their highest level in nearly fourteen year ...Full Story»

Riksbank Sees Repo Rate At Zero In Coming Years (15 hr(s), 14 min(s), 13 sec(s) ago)
(RTTNews) - Sweden's central bank left its key interest rate unchanged at zero and maintained ...Full Story»

Taiwan Jobless Rate Falls In August (17 hr(s), 32 min(s), 13 sec(s) ago)
(RTTNews) - Taiwan's unemployment rate decreased in August, figures from the Directorate Gener ...Full Story»

Turkey Consumer Confidence Improves In September (18 hr(s), 45 min(s), 13 sec(s) ago)
(RTTNews) - Turkish consumer confidence increased in September after easing sharply in the previou ...Full Story»

South Africa Leading Index Rises In July (18 hr(s), 44 min(s), 13 sec(s) ago)
(RTTNews) - South Africa's leading index increased in July, survey data from the South African ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Japan Manufacturing PMI Inches Higher In September - Jibun Bank

09/22/2020 - 20:47 PM (RTTNews)
(RTTNews) - The manufacturing sector in Japan continued to contract in September, albeit at a bare ...Full Story>>

New Zealand Interest Rate Decision On Tap For Wednesday

09/22/2020 - 18:00 PM (RTTNews)
(RTTNews) - The Reserve Bank of New Zealand will wrap up its monetary policy meeting on Wednesday ...Full Story>>

Eurozone Consumer Confidence Improves More Than Expected

09/22/2020 - 11:58 AM (RTTNews)
(RTTNews) - Eurozone consumer confidence rose improved more-than-expected in September to its high ...Full Story>>

U.S. Existing Home Sales Jump To Nearly 14-Year High In August

09/22/2020 - 11:25 AM (RTTNews)
(RTTNews) - Existing home sales in the U.S. climbed to their highest level in nearly fourteen year ...Full Story>>

Riksbank Sees Repo Rate At Zero In Coming Years

09/22/2020 - 07:54 AM (RTTNews)
(RTTNews) - Sweden's central bank left its key interest rate unchanged at zero and maintained ...Full Story>>

Do not sell my personal information

Copyright © 2020. 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.