Free Trial

MNI BRIEF: Bank Indonesia Lowers Growth Forecast, Cuts Rates

MNI (Sydney)
SYDNEY (MNI)

Bank Indonesia cut its benchmark rate by 25 basis points and revised growth expectations lower at its monthly meeting held Thursday, in line with the expectations of the MNI State of Play The 25 bps cut in the 7-day reverse repo rate to 3.5% added to the 125 basis points of cuts seen over 2020. The bank last cut rates in November.

The deposit facility rate was also cut by 25bps, which is now at 2.75%. as was the lending facility rate, which is now 4.25%. Bank Indonesia also revised its GDP forecast tow between 4.3% and 5.3% for 2021, down from the previous range of 4.8% to 5.8%.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
True
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.