IDEAS home Printed from https://ideas.repec.org/p/lpe/gomeet/201712.html
   My bibliography  Save this paper

BI Board of Governor's Meeting, December 2017

Author

Listed:
  • Febrio Kacaribu

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

  • Alvin Ulido Lumbanraja

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

  • Denny Irawan

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

Abstract

Inflation in November virtually confirms that FY 2017 inflation will remain well below 3.50% range and will be close to 3.0-3.2%. Nevertheless, we see inflation to stabilize and 2018 inflation to remain within BI’s goal of 3.5±1%, given the signs towards stronger household consumption in 2018. As major central banks, such as the Fed, ECB, and Bank of Japan started to normalize their monetary policy and reduce the size of their balance sheet, we expect some degree of selloff in emerging market assets, although the overall impact on Indonesia may not be as severe as in 2015. Bank Indonesia have ample foreign reserves to defend Rupiah and Indonesian fundamental remains more robust than in 2015, so that risks of capital outflow should remain manageable. With risks of lower-than-expected inflation and capital flow to remain low in coming months, Bank Indonesia should hold its policy rate for now.

Suggested Citation

  • Febrio Kacaribu & Alvin Ulido Lumbanraja & Denny Irawan, 2017. "BI Board of Governor's Meeting, December 2017," LPEM FEBUI BI Board of Governor Meeting Brief 201712, LPEM, Faculty of Economics and Business, University of Indonesia, revised Dec 2017.
    • Handle: RePEc:lpe:gomeet:201712
    as

    Download full text from publisher

    File URL: https://www.lpem.org/repec/lpe/queouts/BBG201712.pdf
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    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:201712. 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.