LPEM COMMENTARY BI BOARD OF GOVERNORS’ MEETING FEBRUARY 2017

Surrounded by global uncertainty and accelerated inflation, we expect Bank Indonesia to hold the 7 day RRR at 4.75% at the policy meeting on Thursday. Although the Q4 economic growth slowed to 4.94% (y.o.y), below most prediction, Bank Indonesia has limited room for further policy easing due to inflationary pressure and US-dominated global uncertainty.

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