CONSUMER PRICES hiked 0.28% (m-t-m) in Feb. dropped from Jan.’s 0.39%. It was largely driven by higher prices of food & beverages and tobacco, and was possibly linked to supply chain disruption from the coronavirus and floods in Jakarta. Rupiah was on a depreciation trend and hard hit by heightened issue of coronavirus. Its value dropped to the lowest at Rp14,234 on 28 Feb. BI did triple interventions through pouring US dollar supply into the market, offering Domestic Non-Delivery Forward for hedging, and buying back the government bonds. Consequently, foreign reserves dropped US$1.3 US$ 130.4 bn. BI Rate was cut by 25 bps to 4.75% to support economic financing at lower lending rates.

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