IDEAS home Printed from https://ideas.repec.org/p/lpe/gomeet/202212.html
   My bibliography  Save this paper

BI Board of Governor's Meeting, December 2022

Author

Listed:
  • Jahen F. Rezki

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Syahda Sabrina

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Nauli A. Desdiani

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Teuku Riefky

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Amalia Cesarina

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Meila Husna

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Faradina Alifia Maizar

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

November inflation stood at 5.42% (y.o.y), continuing its deceleration pattern in the last three months. A combination of seasonal events as well as impact of inflation controlling efforts by the government and central bank has resulted in a sooner-than-expected inflation peak and more benign inflation rate towards the end of 2022. On the other hand, anticipated rate hike ease by major central banks has triggered surge of capital flows into emerging markets, including Indonesia. Since mid-November, net capital inflow to Indonesia has amounted to around USD2.12 billion, strengthening Rupiah to around IDR15,500 and driving down yields for both 10-year and 1-year Indonesian government bonds to 7.02% and 5.49%, respectively. Thus, we see that BI should ease its hawkish stance and hike policy rate by 25bps this month to 5.50%.

Suggested Citation

  • Jahen F. Rezki & Syahda Sabrina & Nauli A. Desdiani & Teuku Riefky & Amalia Cesarina & Meila Husna & Faradina Alifia Maizar, 2022. "BI Board of Governor's Meeting, December 2022," LPEM FEBUI BI Board of Governor Meeting Brief 202212, LPEM, Faculty of Economics and Business, University of Indonesia, revised Dec 2022.
    • Handle: RePEc:lpe:gomeet:202212
    as

    Download full text from publisher

    File URL: https://www.lpem.org/repec/lpe/queouts/BBG202212.pdf
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    gdp — economic — economic outlook — inflation — macroeconomics — interest rate;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lpe:gomeet:202212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bintoro Seto (email available below). General contact details of provider: https://edirc.repec.org/data/feuinid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.