LPEM Commentary: BI Board Of Governors’ Meeting, November 2015

In a perfect world, current macroeconomic situation would have given BI some space to ease monetary policy. Year-to-date inflation hovers at 2.16%, well below BI’s lower-end target, while the trend of slowdown in growth seems to have bottomed out. This, however, is not a perfect world. We expect BI to maintain its policy rates (Repo rate at 8.00%, FASBI rate at 5.50%, and BI rate at 7.50%) in today’s meeting and in December meeting despite the fact that current situation is akin to textbook case for monetary policy easing.

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