Waiting in Vain for High Interest Remedy
The struggle to maintain the rupiah exchange rate intensifies.
The struggle to maintain the rupiah exchange rate intensifies. With negative sentiments unrelenting, Bank Indonesia (BI) has no choice but to increase the dosage for rupiah’s potent remedy. Last Thursday, BI once again increased its benchmark interest rate to 6 percent. This is the sixth time the BI 7-Day Repo Rate increased throughout 2018.
BI anticipated more pressure on the rupiah from, once again, the balance of dollars flow in and out...