BI Unexpectedly Cuts The Key Rate to 4.75%

Economic Research	21 October 2016
Indonesia
Economic Highlights
BI Unexpectedly Cuts The Key Rate to 4.75% Bank Indonesia unexpectedly cut the benchmark policy to 4.75% on 20th October 2016. BI believes that the move could strengthen the government’s efforts to stimulate domestic demand, including credit, in order to sustain the country’s economic growth. Furthermore, inflation in 2016 is expected to ease to near the floor of the target range of 3-5%. This was also on the back of a better-than-expected current account deficit and relatively stable exchange rate. Economist:  Rizki Fajar| +6221 2970 7065
To access our recent reports please click on the links below: 18 Oct: Exports Continues to Recover while Imports Fall Deeper in September 04 Oct: Money Supply and Loan Growth Decelerate in August 04 Oct: Inflation Picks Up Slightly In September 23 Sep: BI Cuts The Key Rate to 5.00% 15 Sep: Both Exports and Imports Recover in August 01 Sep: Inflation Continues To Ease In August 01 Sep: Money Supply and Loan Growth Decelerate in July