Economics
What to Look for as Indonesia Shifts to New Rate: Decision Guide
- Cutting now risks confusion over policy stance: OCBC
- All but 3 economists surveyed predict the bank will hold
The Bank Indonesia logo is displayed at the central bank's building in this photograph taken with a tilt-shift lens in Bandung city, West Java, Indonesia, on Monday, April 27, 2015.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Less than a week after announcing a new policy framework aimed at spurring economic growth, Bank Indonesia will decide on interest rates. Most economists predict an unchanged stance until the new system takes effect in August.
To improve the transmission of its policies, Governor Agus Martowardojo said on April 15 that the bank will begin using the seven-day reverse repo rate as its benchmark interest rate, replacing the current 12-month reference rate. Here is a short guide on what to expect on Thursday.