Indonesia | Why BI introduced a new policy rate?

Summary

Bank Indonesia (BI) announced last week that it would, effective August 19, 2016; reformulate its policy rate from the BI rate into the 7-day Reverse Repo rate. We examine the significance of this move, while noting that it does not alter BI’s accommodative policy stance, with another 25 bps rate cut expected on April 21st.

Geographies

Topics