BANK INDONESIA RAISES THE FASBI DEPOSIT FACILITY RATE

PREMIUM CONTENT. To continue reading please login, or click on SUBSCRIBE above.

June 15, 2013

JAKARTA – Bank Indonesia (BI) has surprised the market with the timing of an increase in its deposit facility rate (FASBI) by 25 basis points to 4.25%, but ANZ Bank says a move was not unexpected given recent action in currency markets. “Bank Indonesia is worried about the potential for instability arising from outflows from Indonesian assets,” ANZ says. The bank expects additional FASBI hikes should IDR remain under pressure.  It says the outflows from Indonesian assets that prompted BI to react have been significant. www.live.anz.com  (ATI).