Economic Research | 23 August 2017 | |||
Indonesia | ||||
Economic Update | ||||
BI Cuts Key Policy Rate, Maintains Neutral Stance Bank Indonesia’s (BI) board of governors unexpectedly cut the 7-day (reverse) repo rate – the benchmark policy rate – by 25bps to 4.5% on 22 Aug. As risks of financial volatility linger, we believe the Central Bank would maintain its key policy rate for the rest of 2017. Deposit facility and lending rates were also cut to 3.75% and 5.25% respectively. BI believes the decision is consistent with there being room for further monetary policy easing, as evidenced by relatively low inflationary pressure in 2017, while 2018 inflation is projected to be within the target range. Also, the country’s current account deficit appears to be well under control. Economist: Rizki Fajar| +6221 2970 7065 | ||||
To access our recent reports please click on the links below: 16 Aug: Exports And Imports Rebounded in July After Festivities 14 Aug: CAD Continues To Widen In 2Q17, BOP Surplus Declines 08 Aug: Economic Growth Sustained In 2Q17 02 Aug: July Inflation Eases Off After Aidil Fitri Festivities 01 Aug: June M2 Growth Picks Up, Loan Growth Moderates 21 July: BI Continues To Hold Key Policy Rate In July | ||||
Economics Team | ||||
Peck Boon Soon | Chief ASEAN Economist | +603 9280 2163 | ||
Vincent Loo Yeong Hong | Malaysia, Vietnam | +603 9280 2172 | ||
Ng Kee Chou | Singapore, Thailand | +603 9280 2179 | ||
Rizki Fajar | Indonesia, Philippines | +6221 2970 7065 | ||
Aris Nazman Maslan | Malaysia, Vietnam | +603 9280 2184 | ||
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