Indonesia Deposit Facility Rate
Published:
The Bank Indonesia rate paid on eligible banks' rupiah placements in the Deposit Facility.
Full explanation
The Bank Indonesia Deposit Facility Rate is the interest rate Bank Indonesia pays eligible banks for placing rupiah funds with the central bank through its Deposit Facility. It is one of the standing-facility rates used in Bank Indonesia's monetary operations and sits alongside the BI-Rate and Lending Facility Rate. Changes in the rate help signal the central bank's monetary-policy stance and influence short-term rupiah money-market conditions.
Why traders watch it
It is part of Bank Indonesia's policy-rate corridor, so changes or unexpected decisions can affect expectations for short-term IDR funding costs, bond yields and the rupiah.
Stronger vs weaker outcomes
A higher-than-expected rate could be interpreted as a tighter monetary-policy setting or stronger emphasis on currency and inflation stability. A lower-than-expected rate could be interpreted as a more accommodative setting. The market response can also depend on the BI-Rate decision, the Lending Facility Rate and Bank Indonesia's accompanying guidance.
Typical volatility
Moderate. The Deposit Facility Rate is not the main policy rate in isolation. Its market significance depends on the full Bank Indonesia policy package, liquidity operations and whether the decision was already anticipated.
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