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View all search resultsBank Indonesia (BI) has kept its benchmark interest rate unchanged for a second month after recently decreasing it by 25 basis points (bps) in each of three consecutive meetings. The central bank has revised up its gross domestic product projection for the year.
Equity markets tumbled in Asia on Thursday following a late sell-off on Wall Street in reaction to a surprisingly hawkish turn by Federal Reserve boss Jerome Powell who signaled the bank would begin lifting interest rates in March.
The relatively low inflation rate in June may mean that Bank Indonesia (BI) could cut its benchmark rate at the board of governors meeting later this month to help revive the economy amid growing global certainties.
The current account deficit, the main cause of the vicious macroeconomic cycle and the main source of downward pressure on the rupiah to as low as 15,000 to the dollar last October, was among the main issues discussed at two separate conferences here last week.
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