Bank Indonesia Holds Key Rate, Raises Deposit Rate and Eases Reserve Requirements
Bank Indonesia kept its benchmark rate steady, raised its deposit facility rate to support the rupiah and eased reserve requirements to encourage lending. The moves come as an MSCI downgrade threat weighs on Indonesian stocks.
Indonesia’s central bank kept its benchmark interest rate unchanged on Wednesday and raised its deposit facility rate to support the rupiah. It also eased reserve requirements to encourage lending. The steps come as the threat of an MSCI market downgrade fuels selling in Indonesian stocks.