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Macroeconomic Analysis Series: BI Board of Governor Meeting, April 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))

  • Muhammad Adriansyah

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

  • Tarisha Yuliana

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

Abstract

Headline inflation accelerated to 3.05% (y.o.y) in March 2024. For the past six months, rising food prices have been the primary driver of annual inflation, influenced by a delayed harvest season, which has shifted to late March 2024 to April 2024. This month, increasing food prices were further exacerbated by increased demand for food commodities during Ramadan. Rupiah has been facing an enormous currency pressure and surge in capital outflow in the past two weeks, triggered by Middle East geopolitical tension and the ‘high-for-longer’ sentiment by the Fed. However, increasing policy rate might be costly to the real sector and BI has several policy options that can be utilized further supported by ample amount of reserves. Thus, we are in the view that BI should hold its policy rate at 6.00% for now.

Suggested Citation

  • Jahen F. Rezki & Teuku Riefky & Faradina Alifia Maizar & Muhammad Adriansyah & Tarisha Yuliana, 2024. "Macroeconomic Analysis Series: BI Board of Governor Meeting, April 2024," LPEM FEBUI BI Board of Governor Meeting Brief 202404, LPEM, Faculty of Economics and Business, University of Indonesia, revised Apr 2024.
    • Handle: RePEc:lpe:gomeet:202404
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