Hit by Interest Rates
BI’s decision to raise interest rates is starting to have an effect. Mutual funds have been hit by a rush and as little as Rp2.5 trillion is being redeemed each day.
September 6, 2005
A WAVE of commotion has hit mutual funds over the last week. The reason is that investors are all withdrawing their money from this sector of the finance industry. Around 200,000 investors have withdrawn their money. According to the Capital Market Supervisory Agency (Bapepam), between Monday and Wednesday last week, redemptions averaged Rp2.5 trillion per day.
This reaction was due to Bank Indonesia continuously increasing the interest rate f
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