The purpose of “Indonesia Central” does not change amidst market chaos
On Wednesday, the Central Bank of Indonesia, in the light of local markets confusion caused by the concerns of global trade wars and government economic policies, will not change the main interest rates for the second consecutive year.
Indonesia Bank has kept the standard re -bought price at 5.75 per cent over seven days, in accordance with the 31 analysts who surveyed their views, the rest were expected to reduce the interest rate. According to Reuters, the bank has a one -night deposit and interest rates on loan facilities 5 percent, and 6.50 percent respectively.
The decision came in the wake of the sharp decline in the Indonesian and main stock index in Jakarta on Tuesday, as traders expressed their concern about the government’s economic strategy and economic growth opportunities. Despite the losses of the rupees on Wednesday morning, it was mostly established after the Indonesian Bank’s announcement, as it was broadcast at 16,515 against the dollar, reaching its lowest level in the last five years.
The Central Bank has confirmed that any reduction time depends on the economic conditions in the future in the interest rate, in the light of the pressure facing the rupee, is also influenced by capital capital currents as a result of uncertainty about American policies and global interest rates.
In this case, the Governor of the Bank of Indonesia, Perry and Argio, said at a press conference: “We continue to carefully monitor the consequences of inflation and economic growth, and we will determine the time reduction time according to these factors, and consider the movements of the rupee.”
The Consumer Price Index in Indonesia recorded the first annual decline in March 2000 in February, mainly due to the government’s reduction in power prices, leading to its survival outside the bank targeting between 1.5 percent and 3.5 percent.
For many years, President Prabhu Sobanto has been extending to 2029 to increase 8 percent of his period of time in the largest economy in Southeast Asia. In contrast, Indonesia Bank has kept a 2025 growth rate at 4.7 %.
