Indonesia Tasso Di Interesse

The Bank Indonesia unexpectedly raised its key 7-day reverse repurchase rate by 25bps to 6.25% on its April 2024 meeting, compared to market expectations of no change. The rate is now at a new record high level since the benchmark was introduced in 2016, aiming to enhance stability of the rupiah exchange rate against the risks of a worsening global economy and ensure that inflation remains in line with 2.5 ± 1% target for 2024 and 2025. The Indonesian rupiah has touched its lowest level in four years this month, reflecting broader weakness in Asian foreign exchange markets due to a stronger US dollar and risk aversion sentiment, prompting the central bank to intervene to stabilize the currency. Also, inflation rate in Indonesia increased to 3.05% in March, the highest in seven months. Meanwhile, both the overnight deposit facility and the lending facility were also lifted by 25bps to 5.5% and 7%, respectively.