Indonesia tackling dysfunctional money markets
Analysts say the process will be long, central bank needs to become more effective in signalling, and the markets require more tools and products
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INDONESIA'S central bank has taken a first step to fix the country's dysfunctional and often volatile short-term money markets - but the journey will be long.
Frustrated by futile attempts to push down the high cost of funds, Bank Indonesia (BI) is shifting in August to a seven-day operating rate as its policy rate, abandoning the current 12-month reference one.
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