BI Board of Governor's Meeting, September 2018

Febrio Kacaribu (), Alvin Ulido Lumbanraja () and Syahda Sabrina ()
Additional contact information
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)
Syahda Sabrina: Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)

No 201809, LPEM FEBUI BI Board of Governor Meeting Brief from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: Late August to early September saw rapid USD/IDR depreciation to almost 15,000 level, although the pressure on Rupiah has somewhat receded for now. This sharp Rupiah depreciation and deterioration in market sentiment is caused by external pressures. The contagion effect from currency crisis in Turkey and Argentina and recession in South Africa caused global investors to exit emerging markets and move their money to safe haven assets. Moreover, escalation of trade war between United States and China put additional pressures on Rupiah. We see that Bank Indonesia’s credibility in its stabilization pledge is sufficient enough to avoid risks of currency crisis like Argentina, Turkey, or South Africa. Nevertheless, as external pressures and persistent current account deficit remain, BI should continue to anticipate potential market volatility by increasing its policy rates in the coming meeting.

Keywords: gdp; —; economic; —; economic; outlook; —; inflation; —; macroeconomics; —; interest; rate (search for similar items in EconPapers)
Date: 2018-09, Revised 2018-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lpem.org/repec/lpe/queouts/BBG201809.pdf First version, 2018 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:gomeet:201809

Access Statistics for this paper

More papers in LPEM FEBUI BI Board of Governor Meeting Brief from LPEM, Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Bintoro Seto ().