Central bank aims to stabilize currency and ensure inflation remains in check
- Bank Indonesia maintains benchmark rate at 6.00%
- Decision aimed at supporting the rupiah and pre-empting inflation
- Rupiah exchange rate is under control, strengthened nearly 2% against the dollar
- Indonesia’s economy supported by domestic demand and expected to grow in 2023 and 2024
Bank Indonesia has decided to maintain its benchmark seven-day reverse repo rate at 6.00%, in an effort to support the rupiah amidst global uncertainties and pre-empt potential inflation. The decision was in line with expectations, with the central bank also keeping its overnight deposit facility rate at 5.25% and its lending facility rate at 6.75%. Governor Perry Warjiyo stated that the move is aimed at keeping inflation within the target range for this year and the next. He also highlighted that the rupiah exchange rate is under control, having strengthened nearly 2% against the dollar. The central bank will continue to intervene in the market to stabilize the rupiah as necessary. Warjiyo further mentioned that Indonesia’s economy is well-supported by domestic demand, with early indicators pointing to solid GDP growth in the fourth quarter. The bank projects growth of 4.5% to 5.3% in 2023 and expects the economy to continue expanding in 2024, driven by consumer confidence, election tailwinds, and national strategic projects.
Factuality Level: 8
Factuality Justification: The article provides factual information about the decision of Indonesia’s central bank to keep its benchmark interest rates unchanged. It includes quotes from the governor of the bank and mentions the reasons behind the decision, such as supporting the rupiah and controlling inflation. The article also mentions the projections for economic growth and the factors driving it. Overall, the article presents information without significant bias or inaccuracies.
Noise Level: 7
Noise Justification: The article provides information on the decision of Indonesia’s central bank to keep its benchmark interest rate unchanged. It also mentions the reasons behind the decision, such as supporting the rupiah and pre-empting inflation headwinds. The article includes statements from the governor of Bank Indonesia and mentions indicators of solid GDP growth in the fourth quarter. However, the article lacks in-depth analysis, scientific rigor, and evidence to support the claims made. It also does not provide actionable insights or explore the consequences of the decision on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the decision made by Indonesia’s central bank regarding its policy rates, which can have an impact on the country’s financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the monetary policy decision made by Indonesia’s central bank to keep its benchmark rates unchanged. While this decision can have implications for financial markets and companies, there is no mention of any extreme events or their impacts.
Public Companies: Bank Indonesia (N/A)
Key People: Perry Warjiyo (Governor of Bank Indonesia)
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