Growth in Indonesia has slipped to its weakest point in the last four years, according to the latest official financial data released in the Asian nation.
During the July to September quarter, its economy expanded by 5.6 per cent, which was down from 5.8 per cent in the previous three months.
Emerging markets such as Indonesia have been affected in recent months by investors pulling out over fears the US will start to scale back its quantitative easing programme in the near future.
Indonesian currency has also been badly hurt by this trend, with it having dipped by nearly 17 per cent against the US dollar since May this year.
The country's government recently responded to the slowing growth in the Asian nation by raising the key borrowing rate to 7.25 per cent. This is the highest level in more than four years.
Despite the fall in economic growth, the local composite stock market rose by 0.12 per cent today (November 6th) on the back of the news.
Learn about the Asian markets and CFD trading at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.