Bank Indonesia held its benchmark rate at 5.75% on September 23
The Jakarta Post reports that BI held its rate despite a US Federal Reserve hike a week earlier. Rather than raise rates to defend the rupiah, it strengthened incentives for investors to hedge currency exposure.
TLDR
The Jakarta Post’s analysis says Bank Indonesia held its benchmark rate at 5.75 percent on September 23 to keep monetary policy supportive of growth, despite a Federal Reserve hike a week earlier. BI instead strengthened incentives for investors to hedge currency exposure, seeking to balance growth with rupiah stability.
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