LPEM COMMENTARY BI BOARD OF GOVERNORS’ MEETING MARCH 2017
Dominated by the majority, if not all, of market participants that expect The Fed to increase the FFR by 25 basis points on March
Dominated by the majority, if not all, of market participants that expect The Fed to increase the FFR by 25 basis points on March
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
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
After cutting rate six times in 2016, BI may need to maintain the benchmark rate at 4.75% (y.o.y.) on Thursday meeting. Even with slowing
In our Q2 and Q3 2016 outlook, we noted that the outcome of US presidential election may present significant risk to Indonesian economy, even
Highlights BI needs to hold benchmark rate at 5% for now Inflation by end of the year to be within BI’s target range but close
Last month, BI adopted the new set of policy rates that consist of BI 7-Day RR accompanied by new corridor of Lending Facility and
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