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BI Board of Governor's Meeting, February 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

After the Delta outbreak, Indonesia is currently facing the Omicron wave. As of 7th February, daily new cases were reported at more than 27,000 cases (7-day moving average) and many predicted it will peak at the end of February 2022. Despite rising cases, several economic indicators keep progressing, indicating recovery still remains. Similar to GDP that recorded an immense growth of 5.02% (y.o.y) in Q4-2021, yearly inflation rate also drew the same pattern with a notable pick-up of 2.18% (y.o.y) in January 2022 from 1.84% (y.o.y) in December 2022. However, the recent surge of Omicron cases is expected to slow, or even pause, the economic recovery. From the external side, inflationary pressure that continues to linger around several markets forces several central banks to raise the interest rate. As a result, contractions in domestic market are detected in the short-term, indicated by notable amount of outflow and weaker trend of Rupiah. Given these circumstances, BI should hold its policy rate at 3.50% this month while observing domestic condition and closely watching the fluctuations in the global market.

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, February 2022," LPEM FEBUI BI Board of Governor Meeting Brief 202202, LPEM, Faculty of Economics and Business, University of Indonesia, revised Feb 2022.
    • Handle: RePEc:lpe:gomeet:202202
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    File URL: https://www.lpem.org/repec/lpe/queouts/BBG202202.pdf
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    Keywords

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

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