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Indonesia Central Bank Raises Rate to 7%

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Indonesia’s central bank raised its benchmark reference rate 50 basis points to 7.0 percent on Thursday in a bid to stabilize the wilting rupiah and economy as the country battles high inflation and a stock market sell-off.

It also raised its overnight deposit facility rate, FASBI, 50 bps to 5.25 percent and its lending facility rate by 25 bps to 7.0 percent.

Bank Indonesia (BI) held rates steady at a board meeting on Aug. 15, and its next monthly meeting had not been scheduled until Sept. 12. But declines in the rupiah and local stocks began to accelerate over the last week, prompting the Thursday session.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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