# The Spread Between Rupiah and US Dollar Interest Rates is Narrowing

> The interest rate gap between Indonesia and the United States has narrowed to 275 basis points, down from 400 at the start of 2017. Bank Indonesia held its 7-day repo rate at 4.25 percent, while the Fed raised rates by 25 basis points to 1.5 percent on December 13. Domestic political tensions ahead of 2018 regional elections are also prompting investors to favor dollars.

- Date: 2017-12-14 · published 2017-12-14T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/67782-the-spread-between-rupiah-and-us-dollar-interest-rates-is-narrowing
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

A narrower rate differential makes the rupiah more vulnerable to depreciation, which would raise the local cost of imported feed inputs.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- databoks.katadata.co.id: https://databoks.katadata.co.id/en/monetary/statistics/f445cd88001f6af/the-spread-between-rupiah-and-us-dollar-interest-rates-is-narrowing

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