Bank Indonesia Raises Benchmark Rate 25 Basis Points in Off-Cycle Move to Defend Rupiah
Bank Indonesia unexpectedly raised its benchmark interest rate by 25 basis points in an off-cycle meeting, escalating its response to market stress as the rupiah came under renewed pressure. The move follows earlier intervention efforts and comes after the currency touched a record 18,090 per dollar, while foreign-exchange reserves fell for a fifth straight month in May.
The decision came as Indonesia’s debt selloff deepened, pushing the five-year bond yield to its highest level in more than six years. The benchmark stock index weakened after the surprise hike but still held a 3.8% gain, and analysts said the central bank may need to raise rates again to shield the rupiah and curb market volatility.
From the sources (16 posts)
@businessIndonesian authorities need to provide firmer policy guidance and unveil concrete steps to improve sentiment after last week’s selloff that pummeled stocks and the currency, according to analysts
@zerohedge*INDONESIA'S STOCK BENCHMARK FALLS 4% TO 5,372.31
@firstsquawkIndonesian Currency Falls to Record Low as Rupiah Touches 18,090 per Dollar
@zerohedge*INDONESIA RUPIAH FALLS 0.5% TO RECORD LOW AS STOCKS PLUNGE Nothing like another Asian crisis
@firstsquawkIndonesia’s Central Bank to Intervene as Needed to Stabilise Exchange Rate Movements
@zerohedge*INDONESIA END-MAY FOREIGN RESERVES FALL TO $144.9B
@firstsquawkIndonesian Government Bond Yields Climb Sharply, 10-Year Hits 7.142%
@businessIndonesia’s foreign-exchange reserves fell for a fifth straight month in May, underscoring the cost of policymakers’ efforts to steady the rupiah after its slide to a record low
@zerohedgeINDONESIAN BONDS EXTEND LOSSES, 10-YEAR YIELD CLIMBS OVER 30 BP
@businessIndonesia’s five-year bond yield climbs to the highest level in more than six years as a debt market selloff deepens
@businessIndonesia’s central bank unexpectedly raised its benchmark interest rate by 25 basis points in an off-cycle meeting, moving to shore up the rupiah
@wsjIndonesia’s central bank hiked rates in an off-schedule decision on Tuesday, coming as a complex mix of headwinds hammer the country’s currency.
@firstsquawkIndonesian benchmark index weakens after Bank Indonesia surprise hike but holds 3.8% gain.
@cnbcIndonesia hikes rates in surprise move to arrest rupiah weakness
@businessIndonesia may raise interest rate again to shield the rupiah and curb market volatility, according to analysts
@reutersIndonesia hikes rates in surprise off-cycle move to prop up sinking rupiah