Bank Indonesia: Nothing New at This Month’s Policy Meeting
September 11, 2014
The statement released after the September meeting of Bank Indonesia’s Board of Governors doesn’t break fresh ground. 175 basis points worth of increase in the BI interest rate from June to October of 2013 are believed to be “steering inflation toward the target to 4.5 ± 1% in 2014 and 4 ± 1% in 2015, as well as lowering the current account deficit to a more healthy level.” Macroprudential policies are also being pursued. Inflation is falling but still above target. Growth is moderate, and the rupiah is less volatile than last year when officials were compelled to raise the key interest rate. No hint is given to when the next interest rate change might occur.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Indonesia
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