LPEM COMMENTARY BI BOARD OF GOVERNORS’ MEETING JANUARY 2016: New Year, New Uncertainties

If recent developments in the global market are any indication, Bank Indonesia is set to face yet another challenging year ahead. Current liquidity in the banking system does not necessitate a change in the policy rates while the demand for loans is still dimmed. BI should maintain its policy rates in the upcoming meeting and continue its focus on balancing between exchange rate stability and current account deficit.

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