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BI Board of Governor's Meeting, February 2023

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

Massive inflationary pressures last year, were met by consistent monetary tightening efforts by Bank Indonesia since last August. As a result, headline inflation continued to decline and stood at 5.28% (y.o.y) in January 2023. The rapid capital inflow since mid-January, has lifted Rupiah to its strongest level of IDR14,875 in early February and currently stabilized at around IDR15,090. Considering these factors, in addition to the current less aggressive stance by the Fed, we view that holding policy rate at 5.75% this month should be adequate to maintain price and exchange rate stability while continuing the macroprudential measures without jeopardizing the current economic growth momentum.

Suggested Citation

  • Jahen F. Rezki & Syahda Sabrina & Nauli A. Desdiani & Teuku Riefky & Amalia Cesarina & Meila Husna & Faradina Alifia Maizar, 2023. "BI Board of Governor's Meeting, February 2023," LPEM FEBUI BI Board of Governor Meeting Brief 202302, LPEM, Faculty of Economics and Business, University of Indonesia, revised Feb 2023.
    • Handle: RePEc:lpe:gomeet:202302
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    File URL: https://www.lpem.org/repec/lpe/queouts/BBG202302.pdf
    File Function: First version, 2023
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    Keywords

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

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