Dominated by the majority, if not all, of market participants that expect The Fed to increase the FFR by 25 basis points on March FOMC meeting, we maintain that Bank Indonesia should leave the policy rate unchanged at 4.75% in governor’s meeting on Thursday.
(This brief is available only in Bahasa Indonesia.) Generally, financial inclusion in Indonesia is being done through Digital Financial Services (LKD) medium by Central Bank of Indonesia and Branchless Financial Services related to Financial Inclusive Framework by (Laku Pandai) by Financial Service Authority (OJK). Success of the LKD program in financial inclusion is highly dependent […]
General Inflation in February 2017 is the first February’s inflation (incidence) after the last three years recorded as deflation. (General) inflation in this month is 0,23% (mtm) or 3,83% (yoy). General inflation in February 2017 is still lower compare to inflation of February 2013 and 2014.
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.
Still consistent with our previous outlook, we expect 2016 GDP to grow at around 5.1% level, higher than the preceding year. This is attributable to more robust consumption growth amid low inflation. However, this growth is most probably lower than the potential amid stagnating government spending in 2016 due to two budget cuts in the second semester […]
In January 2017, general inflation is 0,97% (mtm) or 3,49% (yoy). Inflation in January 2017 is higher compare to inflation in January 2015 and January 2016, with deflation of 0,24% (mtm) and inflation of 0,51%. The main cause of this month inflation are rising electricity cost for costumer with 900VA maximum electricity power and higher […]
Despite annual inflation at its lowest level since 2010, at 3.02% (y.o.y) in 2016, and the need to drive economic growth, we still believe that BI needs to maintain the benchmark rate at 4.75% (y.o.y) in its first meeting in 2017.