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Bank Indonesia surprised markets by raising its policy rate to 6.0% on October 19 to shore up the rupiah, which had fallen 1.77% for the month. The central bank said it made a preemptive move to keep inflation manageable amid rising global headwinds.
It expects capital outflows to persist through the year.
Higher Indonesian rates tighten financing for the feed and livestock sectors and can cut domestic demand for feed grains and meal. The currency pressure also raises the local-currency cost of imported feed ingredients.
think.ing.comNicholas MapaOct 19, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
