Skip to main content

Indonesia Takes Taper Talk in Stride, Holds Rates at Record Low

“The main reason we don’t expect any further rate cuts is the uncertain outlook for the currency,” Gareth Leather, senior Asia economist at Capital Economics, wrote after the decision. “We think further declines in the rupiah are likely as fears about higher inflation in the U.S. push bond yields and the dollar higher. A high level of foreign currency debt makes Indonesia vulnerable to big currency falls.”
View article