Central banks in the Asia Pacific pledged to spend billions of dollars






Based on the Board of Governors’ Meeting (RDG), BI will reduce the BI 7-Day Reverse Repo Rate (BI7DRR) by 25 bps to 4.50%, the Deposit Facility interest rate by 25 bps to 3.75%, and the Lending Facility interest rate by 25 bps to 5.25%. BI will encourage economic growth with 7 steps, namely triple intervention, extend the SBN Repo tenor to 12 months and provide daily auctions, increase the frequency of FX swap auctions, strengthen foreign currency Term Deposit instruments, accelerate the use of domestic Rupiah accounts (Vostro) for foreign investors, expanding the policy of easing daily reserve requirement in Rupiah by 50bps, and encouraging non-cash financing. (Bank Indonesia)

Central banks in the Asia Pacific pledged to spend billions of dollars and implemented new policy steps to stem a bond market rout on Thursday. The Bank of Japan and Bank of Korea offered to buy bonds worth a total of $13.1 billion, while Japan’s authority said it would supply another 4 trillion yen ($36.7 billion) of funds. Australia’s central bank, one of the last major holdouts against quantitative easing, said it would buy government debt across the curve, while targeting a yield of 0.25%for the three-year bond. (Bloomberg)

Source: Danareksa Sekuritas Debt Research
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