Regulations
Bank Indonesia (BI) has increased the benchmark interest rate outside the routine schedule to shore up the rupiah after a hefty hike at the last Board of Governors' meeting and other measures failed to arrest the currency’s depreciation.
Bank Indonesia (BI) Governor Perry Warjiyo speaks to reporters on Tuesday after a meeting with the House of Representatives' budget committee in Jakarta. Earlier in the day, BI increased the benchmark interest rate in a surprising announcement outside of the regular monthly schedule. (Antara/Rizka Khaerunnisa)
Bank Indonesia (BI) has increased its benchmark interest rate outside the routine schedule to shore up the rupiah after a hefty hike at the last board of governors' meeting failed to arrest the currency’s depreciation while market intervention has used up substantial foreign exchange reserves.The central bank announced its decision to hike the BI Rate by 25 basis points (bps) around lunchtime on Tuesday, during the midday trading break for the local stock market.
After the announcement, BI Governor Perry Warjiyo told reporters that the central bank reviewed its projections every Tuesday to evaluate the impact of the monetary policy.
