MACROECONOMIC ANALYSIS SERIES: BI Board of Governor Meeting, November 2018

Inflation rate seems to follow its seasonal pattern in general; after two months of consecutive deflation, month-to-month inflation rate has started to climb in anticipation of seasonal  increase in consumption around Christmas and New Year. Impact of the increase in nonsubsidized fuel prices have also started to materialize in the inflation rate. Stronger domestic demand, along with receding external pressures following announcement of trade  talks between China and US, are among the reasons to be rather optimistic about general trend in financial market. This more sanguine outlook is  reflected by recent upward movement of Rupiah. Bank Indonesia can afford to hold its interest rate this Thursday; BI should increase its policy rates  again in December.

Download (PDF, 1.22MB)