# What Impact Will the Fed's Interest Rate Cut Have on the Indonesian Economy?

> Indonesia's central bank cut its benchmark rate by 25 basis points to 6% on September 18, a day before the Federal Reserve reduced its rate by 50 basis points. The article examines the effects of these moves on Indonesian monetary policy, the rupiah, capital markets, credit and the real sector.

- Date: 2024-09-22 · published 2024-09-22T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/28628-what-impact-will-the-fed-s-interest-rate-cut-have-on-the-indonesian-economy
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Lower Indonesian rates and a weaker dollar path affect the rupiah and the cost of imported feed ingredients priced in dollars. The direct impact on feed commodity prices is limited.

## Read by commodity

- DXY: bearish ▼
- USDIDR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-14 | [Euro Nears Year’s High on Bet Fed Will Cut Rates Faster Than ECB](https://feedsoft.ai/events/29016-euro-nears-year-s-high-on-bet-fed-will-cut-rates-faster-than-ecb.md) | -1.0% | -0.2% |
| DXY | 2024-10-01 | [What a Fed rate cut could mean for the world](https://feedsoft.ai/events/28219-what-a-fed-rate-cut-could-mean-for-the-world.md) | +0.9% | +2.9% |
| DXY | 2019-03-26 | [It's not too soon for a Fed interest rate cut, according to this chart](https://feedsoft.ai/events/59994-it-s-not-too-soon-for-a-fed-interest-rate-cut-according-to-this-chart.md) | +0.5% | +0.3% |
| DXY | 2019-10-31 | [Gold gains as dollar weakens after Fed's interest rate cut](https://feedsoft.ai/events/56483-gold-gains-as-dollar-weakens-after-fed-s-interest-rate-cut.md) | -0.1% | +0.8% |
| DXY | 2024-01-31 | [Fed's Powell sees lower rates on the horizon as inflation ebbs, economy bounces ahead \| Reuters](https://feedsoft.ai/events/32027-fed-s-powell-sees-lower-rates-on-the-horizon-as-inflation-ebbs-economy-bounces.md) | +0.3% | +0.4% |

## Sources

- kompas.id: https://www.kompas.id/artikel/en-apa-dampak-penurunan-suku-bunga-the-fed-untuk-perekonomian-indonesia

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.