Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the first meeting of 2023, a sixth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.75%, the deposit facility at 5.00% and the lending facility at 6.50%, their highest level since 2009 and in line with market forecasts. So far since August last year the central bank has lifted rates by 225bps. Indonesia’s annual inflation rate … Continue reading “Bank Indonesia Raised Rates Another 25 basis points to Highest Level Since 2009”

Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009

Bank Indonesia increased interest rates by 25 bps during the last meeting of 2022, a fifth consecutive hike, on Thursday as it sought to tame inflation and strengthen the rupiah exchange rate. The benchmark 7-day reverse repurchase rate now stands at 5.5%, the deposit facility at 4.75% and the lending facility at 6.25%, their highest level since 2009 and in line with market forecasts. So far in 2022, the central bank has lifted rates by 200bps. Indonesia’s annual inflation rate fell to … Continue reading “Bank Indonesia Raised Rates by 25 basis points to Highest Level Since 2009”

Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank hiked by 50 basis points to 5.50% and follows a 75 basis-point increase at the last meeting. It was the seventh consecutive rate hike, pushing borrowing costs to a new high since early-2009. BSP joined the Federal Reserve and the Hong Kong’s monetary authority in raising its base rate to combat inflation. Later the same day, Taiwan’s central bank announced a 12.5-basis-point increase to 1.75%, The Philippine … Continue reading “Philippines Central Bank Raised Rates by 50 basis points to 5.50% with Inflation at 14 Year Highs”

South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors

The South African rand fell over 4% against the dollar to around 17.95 before paring losses to the lowest since November 4th, after “farmgate” rumors spread that President Cyril Ramaphosa was considering resigning after a panel report found preliminary evidence, he may have committed serious misconduct. Ramaphosa was due to address the nation on Thursday, Ramaphosa’s spokesman Vincent Magwenya said: “An announcement is imminent. … I can’t confirm the date and time, we will advise.” in response to Reuters. Farmgate … Continue reading “South African Rand Plunges on President Cyril Ramaphosa Farmgate Scandal Rumors”

South Africa Raises Interest Rates 75bps to Tame Inflation

The South African Reserve Bank (SARB) increased its benchmark repo interest rate by another 75 bps to 7% at its November 2022 meeting, as widely expected. Prime is now at 10.5%. This was the 7th consecutive rate hike as the SARB tries to tame inflation expectations more firmly around the mid-point of the target band and achieve the inflation target in 2024. South Africa’s inflation rate unexpectedly rose to 7.6% in October from 7.5% in September. The decision was not … Continue reading “South Africa Raises Interest Rates 75bps to Tame Inflation”

Bank Indonesia Raised Rates by Another 50 basis points to 4.75% to Tame Inflation

Bank Indonesia increased interest rates by 50 bps which was more than expected on Thursday as it sought to stall in inflation and strengthen the rupiah exchange rate.  Indonesia’s annual inflation rate accelerated to 5.95% in September 2022, marking the fastest rise in consumer prices since October 2015.  The move was the third hike this year and bringing borrowing costs to the highest since February 2020. Bank Indonesia (BI) raised the 7-day reverse repurchase rate by 50 basis points to … Continue reading “Bank Indonesia Raised Rates by Another 50 basis points to 4.75% to Tame Inflation”

Philippines Central Bank Raised Rates by 50 basis points to 4.25%, Moves to Support Peso

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), Philippines central bank hiked by 50 basis points to 4.25%, the highest since August 2019. BSP joined Indonesia and some other Asian central banks raising rates. Hong Kong’s monetary authority had also raised its base rate by 75 basis points to 3.5% on Thursday. Later the same day, Taiwan’s central bank announced a 12.5-basis-point increase to 1.625%, Vietnam’s central bank said it would raise its benchmark rate, currently 4%, by … Continue reading “Philippines Central Bank Raised Rates by 50 basis points to 4.25%, Moves to Support Peso”

Bank Indonesia Raised Rates by 50 basis points to 4.25% to Rein in Inflation

Bank Indonesia increased interest rates by 50 bps which was more than expected on Thursday as it sought to rein in inflation. The Indonesian central bank sees end-2022 headline inflation at slightly above 6%. The move follows a plethora of central banks hiking rates this week. First off was Sweden’s Riksbank on Tuesday with a 75 basis-point hike. Wednesday the Fed raised 75bps. Brazil’s central bank remained unchanged after the FOMC. Bank Indonesia (BI) raised the 7-day reverse repurchase rate … Continue reading “Bank Indonesia Raised Rates by 50 basis points to 4.25% to Rein in Inflation”

A Big Week for Central Bank Rate Hikes

The week ahead is being billed as Fed Week; it is so much more there are three days of central-bank decisions with multiple interest-rate hikes on their way. First off will be Sweden’s Riksbank on Tuesday, with a likely 75 basis-point hike. Wednesday the Fed is set to raise 75bps also, with a chance of 100bps. Brazil’s central bank is later after the FOMC. Thursday you get Asian central banks in the Philippines, Indonesia, Japan and Taiwan are all expected … Continue reading “A Big Week for Central Bank Rate Hikes”

South Africa Raises Interest Rates Despite Lowering Growth and Inflation Forecasts

The South African Reserve Bank (SARB) increased its benchmark interest rate for the first time in over two years seeking to get ahead of what it sees as elevated inflation risks. The decision was split and comes depite cutting GDP and infaltion estimates.