Forex News

10:29:54 19-10-2021

USD/IDR Price News: Rupiah hits daily highs near 14,050 on Bank Indonesias status-quo

Indonesia’s central bank, Bank Indonesia (BI), announced no changes to the benchmark 7-day reverse repo, leaving it at 3.50% during the October monetary policy meeting held this Tuesday.

The central bank governor Perry Warijyo said that “global economic recovery is expected lower than previously estimated due to rising cases of COVID-19, higher energy prices.”

Additional comments

Global recovery to continue in 2022 but disruption in global supply chain needs to be monitored.

Domestic economy shows continued improvement after COVID-19 curbs eased.

Domestic economic recovery supported by high exports, improving consumption after easing COVID-19 restrictions.

Keeps 2021 GDP growth outlook at 3.5% to 4.3%.

Q3 current account balance seen in surplus.

Continue to make sure rupiah reflects fundamentals.

Interest rate decision taken in line with low inflation outlook, needs to support growth, maintain stability.

To optimise all policy mix to guard stability while supporting growth.

To keep loose credit requirements for automotive and property loans into 2022.

FX implications

The Indonesian Rupiah (IDR) keeps its bid tone intact following the in-line with expectations BI no-rate change decision.

At the time of writing, USD/IDR trades at 14,067, down 0.27% on a daily basis. The spot is sitting at daily lows, snapping Monday’s rebound from eight-month lows of 14,040.

 

News provided by the portal FXStreet
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