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Macroeconomic Analysis Series: BI Board of Governors Meeting, March 2024

Author

Listed:
  • Jahen F. Rezki

    (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))

  • Faradina Alifia Maizar

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

Abstract

General inflation increased to 2,75% (yoy) in February 2024 following an increase in food prices due to a combination of pressure from the demand and production sides. The increasing intensity of El-Nino disrupts the adequate supply of food commodities, while the Ramadan period causes an increase in demand for food commodities. Furthermore, the unexpected rise in US inflation sparked sentiment that the Fed needed to postpone reducing its benchmark interest rate from its highest point in the last 23 years. This condition is quite influential in the occurrence of capital outflows from the Indonesian bond market. Despite the high pressure on the Rupiah, in the last few weeks the movement of the Rupiah has tended to be stable. So, we are of the view that BI needs to hold its benchmark interest rate at 6,00%.

Suggested Citation

  • Jahen F. Rezki & Teuku Riefky & Faradina Alifia Maizar, 2024. "Macroeconomic Analysis Series: BI Board of Governors Meeting, March 2024," LPEM FEBUI BI Board of Governor Meeting Brief 202403, LPEM, Faculty of Economics and Business, University of Indonesia, revised Mar 2024.
    • Handle: RePEc:lpe:gomeet:202403
    as

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    File URL: https://lpem.org/repec/lpe/queouts/BBG202403.pdf
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