With inflation declining considerably in April to the lower bound of BI inflation target, thus easing inflationary concern, we expect Bank Indonesia to remain focused on growth rate and external pressure on Rupiah in setting policy rate. We maintain our view of unchanged policy rate in the near term, since Bank Indonesia still have to face conflicting objective of maintaining Rupiah against rapid depreciation and inducing growth.
Lembaga Penyelidikan Ekonomi dan Masyarakat – Fakultas Ekonomi dan Bisnis – Universitas Indonesia
LPEM COMMENTARY BI BOARD OF GOVERNORS’ MEETING MAY 2016
Mei 20, 2016
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