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Economic Research
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16
June 2017
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Indonesia
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Economic Update
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BI’s board of
governors held the 7-day (reverse) repo rate – the benchmark policy rate –
unchanged at 4.75% on 15 Jun. We believe the central bank is to maintain its
key policy rate for the rest of 2017. This is on the back of moderate
inflationary pressure and a manageable current account deficit.
Deposit facility
and lending rates were also maintained at 4% and 5.5% respectively. Bank
Indonesia (BI) believes that the move is consistent with its efforts to
maintain macroeconomic and financial stability while preserving the domestic
economic recovery process. This is against a backdrop of global risks in the
form of the current discourse over US policy direction, geopolitical issues
and a potential increase in commodity prices. There are also domestic risks
with regards to upward changes in administered price inflation, as well as
ongoing consolidation in the corporate and banking sectors, which have
undermined the impact of the various economic stimuli introduced.
Economist:
Rizki Fajar| +6221 2970 7065
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Friday, June 16, 2017
BI Continues To Hold Key Policy Rate In June
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