Central Bank of Indonesia Unexpectedly left unchanged interest rate cuts at 20:40 on May 19
At the meeting to decide monetary policy on the 19th, the central bank of Indonesia decided to leave the policy rate unchanged, contrary to the expectations of the market that expected to cut interest rates, but in the future, the impact of the spread of the new coronavirus will be serious. If so, he suggested the possibility of cutting interest rates.
In Indonesia, personal consumption and exports were sluggish due to the spread of the new coronavirus, and the GDP (Gross Domestic Product) growth rate from January to March was 2.9%, which is the lowest level since 2001. I will.
As a result, there was a growing view among market participants that additional rate cuts would be made, but the Indonesian central bank decided to leave the policy rate unchanged at 4.5% at the monetary policy meeting on the 19th. It was.
"This decision is a measure to maintain the stability of the rupiah currency," said Perry Governor of the Central Bank, explaining that it is necessary to prevent the currency from depreciating due to interest rate cuts.
However, this year's economic growth rate in Indonesia is forecast to deteriorate further, and President Perry suggested that if the impact of the spread of the new coronavirus becomes serious, the interest rate may be lowered.