TEMPO.CO, Jakarta -Samuel Sekuritas Indonesia economist Rangga Cipta said that the stimulus provided by the majority of the world’s central banks had increased Bank Indonesia’s (BI) confidence.
“For the third time, the BI rate has been lowered by 25 basis points (bps), showing consistent supports for growth,” Rangga said in his research.
However, Rangga pointed out the difference of the FASBI Rate and the inflation rate by 35 bps reflected a possibility of further rate cut.
Rangga revealed that BI’s move to be more careful in monetary policy easing indicated the need of balance between expectations, economic fundamentals and uncertainty.
“Further fuel price cut will allow for BI to further slash its rate by 50 bps,” Rangga added.
BISNIS.COM