On Tuesday 20 November markets are closed for a public holiday
19 November 2018 (closed)
USD/IDR (14,586) +0.00 +0.00%
EUR/IDR (16,643) +0.00 +0.00%
Jakarta Composite Index (6,005.30) -7.05 -0.12%
The central bank of Indonesia (Bank Indonesia) left its benchmark interest rate (the BI 7-Day Reverse Repo Rate) unchanged at 5.75 percent at the October 2018 policy meeting (22-23 October). Meanwhile, the deposit facility and lending facility rates were kept at 5.00 percent and 6.50 percent, respectively.
In a statement Bank Indonesia said that this decision is consistent with its ongoing efforts to curtail the country's wide current account deficit, while maintaining the attractiveness of domestic financial markets, thereby bolstering external resilience in Indonesia against a backdrop of persistently high global uncertainty.
The decision to leave interest rates unchanged (after five rate hikes since May 2018 that were aimed at easing pressures on the rupiah exchange rate) was in line with our expectation. Since the second week of October the rupiah has been fairly stable against the US dollar, even slightly appreciating.
Based on the Bloomberg Dollar Index the Indonesian rupiah depreciated 0.03 percent to IDR 15,192 per US dollar on Tuesday (23/10). Meanwhile, Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.11 percent to IDR 15,208 per US dollar.
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
Read the full article in the October 2018 edition of our monthly research report. You can purchase this report by sending an email to firstname.lastname@example.org or a WhatsApp (WA) message to the following number: +6287884106944
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