{"id":24390,"date":"2011-10-11T05:02:00","date_gmt":"2011-10-11T09:02:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/10\/11\/bank-indonesia-cuts-interest-rate-25bps-to-6-50\/"},"modified":"2011-10-11T05:02:00","modified_gmt":"2011-10-11T09:02:00","slug":"bank-indonesia-cuts-interest-rate-25bps-to-6-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/10\/11\/bank-indonesia-cuts-interest-rate-25bps-to-6-50\/","title":{"rendered":"Bank Indonesia Cuts Interest Rate 25bps to 6.50%"},"content":{"rendered":"

Indonesia’s central bank, Bank Indonesia<\/a><\/span>, dropped the BI reference rate 25 basis points to 6.50% from 6.75%.  Bank Indonesia Governor, Darmin Nasution, said: “We are bringing the policy rate to a level that is more reasonable,” further noting “we saw the 6.75 percent rate<\/a> as too high, unless we estimated inflation next year to be very high.”  Nasution also noted the impact of global conditions; “The global crisis has not hit our real sector except for the financial market,” and pointed out that “Private consumption and investment remain the driver in economic growth.”<\/span><\/span><\/span>
<\/a><\/span><\/span><\/span>
<\/a> <\/a><\/a>At its September meeting, the Bank held the key monetary policy rate<\/a> (the BI Rate) unchanged at 6.75%.  Previously the Bank raised the BI rate by 25 basis points<\/a> to the current 6.75% in February 2011.  Indonesia reported annual inflation of 4.61% in September, compared o 4.79% in August and July, 4.61% in June, 5.98% in May, 6.16% in April, and <\/span><\/span>6.65% in March, and just inside the inflation<\/a> target of 5% +\/-1% in 2011 (which changes to 4.5% +\/-1% in 2012).  <\/span><\/span><\/span><\/span><\/span>

Nasution said the Bank expects “inflation next year will be below 5%”.  Bank Indonesia has previously forecast GDP growth of 6.3-6.8% in 2011 and 6.4-6.9% in 2012 for the Indonesian economy, meanwhile Indonesia reported annual GDP growth of 6.5% in the June quarter this year.  <\/span><\/span><\/span><\/span><\/span>

The Indonesian Rupiah<\/a> (IDR) has gained about 1% against the US dollar so far this year, and the USDIDR exchange rate last traded around 8,995.<\/span><\/span><\/span><\/span>
<\/span><\/p>\n

\n
\n

<\/span><\/span><\/span><\/span><\/span><\/div>\n
www.CentralBankNews.info<\/span><\/a><\/span><\/span><\/span><\/span><\/span><\/div>\n<\/div>\n<\/div>\n
\"\"<\/div><\/p>\n","protected":false},"excerpt":{"rendered":"

Indonesia’s central bank, Bank Indonesia, dropped the BI reference rate 25 basis points to 6.50% from 6.75%.  Bank Indonesia Governor, Darmin Nasution, said: “We are bringing the policy rate to a level that is more reasonable,” further noting “we saw the 6.75 percent rate as too high, unless we estimated inflation next year to be very … <\/p>\n

Continue reading “Bank Indonesia Cuts Interest Rate 25bps to 6.50%”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-24390","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/24390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=24390"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/24390\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=24390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=24390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=24390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}