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Macroeconomic Analysis Series: BI Board of Governors Meeting, October 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))

  • Difa Fitriani

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

Abstract

In September 2024, Indonesia’s headline inflation eased to 1,84% (yoy) from 2,12% in August 2024, marking the lowest level since December 2021, mainly driven by a decline in volatile food prices. Core inflation edged up to 2,09% (yoy), driven by higher prices of ground coffee and education. In addition, the Fed began its monetary easing cycle by cutting its policy rate by 50bps last month, almost in line with BI cutting its policy rate by 25bps. Recent developments show that the Rupiah is stable at around Rp15.660/USD, despite depreciating amid capital outflows influenced by geopolitical tensions and uncertainty surrounding the US election. Although foreign exchange reserves fell to USD149,9 billion, Bank Indonesia is expected to maintain the BI rate at 6,00% at its October meeting. Any potential room for further policy cuts should be reserved to address the risk of a prolonged deflationary trend.

Suggested Citation

  • Jahen F. Rezki & Teuku Riefky & Faradina Alifia Maizar & Difa Fitriani, 2024. "Macroeconomic Analysis Series: BI Board of Governors Meeting, October 2024," LPEM FEBUI BI Board of Governor Meeting Brief 202410, LPEM, Faculty of Economics and Business, University of Indonesia, revised Oct 2024.
    • Handle: RePEc:lpe:gomeet:202410
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