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On February 20, 2020, Bank Indonesia cut its 7-day reverse repo rate by 25 basis points to 4.75%, in line with most economists' expectations, ending three months of unchanged policy. The bank cut its 2020 GDP growth forecast to 5.0-5.4% and blamed the coronavirus outbreak's effect on tourism, trade and investment.
The rupiah was holding near a six-week low after the decision.
Lower Indonesian interest rates can reduce the appeal of rupiah assets, adding pressure on the currency and raising the cost of dollar-priced feed imports. A weaker growth outlook may also reduce feed demand in the coming year.
octaafrica.netFeb 20, 2020Not 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.
