Struggling to Absorb Government Bonds
Monday, 1 August 2022
BANK Indonesia's action to hold interest rates triggered the flight of foreign capital. Domestic investors will find it difficult to absorb government bonds.
THE train of higher interest rates is departing, and Bank Indonesia (BI) is getting left behind. Last week, the United States’ Federal Reserve raised interest rates again, this time by 0.75 percent. It was the fourth time the Fed has raised interest rates this year, with a total rate increase of two percent. The Fed’s interest now lies in the range of 2.25 percent to 2.5 percent. By contrast, BI is still holding its benchmark interest...
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