Indonesian central bank hikes rates as global volatility hits rupiah
Forex interventions cut reserves by 11% between January and July 2018
The Bank of Indonesia hiked interest rates after its monetary policy meeting today (August 15), against a backdrop of falling emerging currencies.
The central bank’s board of governors increased the reverse repo rate by 25 basis points to 5.5%. It also increased the deposit facility by 25bp to 4.75% and raised its lending facility by 25bp to 6.25%.
The decision follows days of heightened volatility across emerging markets, starting with a major fall in the value of the Turkish lira on August 8
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