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MNI BI Preview – August 2021: Bank Indonesia To Remain On Hold

EXECUTIVE SUMMARY

  • Lockdowns implemented to contain one of the region's worst outbreaks of Covid-19 weigh on growth outlook, while inflation remains persistently subdued.
  • However, concerns about creating excessive rate differential with the U.S. and undermining the rupiah should prevent policymakers from loosening policy.
  • Governor Warjiyo's noted in recent weeks that the central bank could start reducing liquidity in the financial system from next year.

Click to view the full preview: MNI BI Preview August 2021.pdf

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