• Major Earthquakes and Devastating Tsunami Hit Central Sulawesi

    About one month after the devastating earthquakes that hit the island of Lombok and killed nearly 500 people, disaster has now struck at coastal cities and villages in Central Sulawesi. On Friday 28 September 2018 a big 7.5-magnitude earthquake (followed by numerous aftershocks) triggered a massive tsunami that hit at least two cities: provincial capital Palu and Donggala.

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  • Monetary Policy: Bank Indonesia Raises Key Interest Rate to 5.75%

    The central bank of Indonesia (Bank Indonesia) raised its benchmark interest rate (the seven-day reverse repo rate) by 25 basis points (bps) to 5.75 percent at the two-day policy meeting that was concluded on Thursday (26-27 September 2018). Also the deposit facility and lending facility rates were raised by 25 bps to 5.00 percent and 6.50 percent, respectively.

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  • Positive Response Indonesian Stocks & Rupiah to Fed's Rate Hike

    In line with expectations, the US Federal Reserve decided to raise its benchmark interest rate by 25 basis points to the range of 2.00 - 2.25 percent at the September policy meeting that was concluded on Wednesday 26 September 2018. It is the Fed's eight rate hike since 2015 and the third one so far in 2018.

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