Jakarta, mpi-update. Governor of Bank Indonesia, Agus Martowardojo, said the direction of central bank policy in 2017 will not be too much emphasis on the stability of the economy.
According to the Annual Meetings of the Bank of Indonesia, in Jakarta, on Tuesday night, the policy direction of Bank Indonesia as the monetary authority remains open to encourage Indonesia’s economic growth is strong and balanced.
However, when faced with a stressful situation the economy, Bank Indonesia will ensure advance economic stability maintained, to then optimize the policy mix in promoting economic growth.
“If we are in a period should choose stabiliasasi or growth, stbailisasi we must make sure that there is, “said Agus said the monetary policy stance and Bank Indonesia allegedly returned prioritizes stability over growth (stability over growth) in 2017.
in mid-2016, with inflation subdued Bank Indonesia has given the signal has shifted its monetary policy from the previous megarahkan on the stability of the economy, into monetary policy that encourages economic growth.
The shift in policy was characterized by a decrease in interest rates and reserve requirement which respectively reached 150 basis points during the year.
In 2017, Agus said the central bank should look more closely at tanangan global economy will hit the domestic economy.
“The challenges of global economy have yet to be recovered, given the many risks in komditas prices and financial markets. These challenges must look for solutions more fundamental in order not to significantly affect the domestic economy, “he said.
economic stability, further Martowardojo, should be maintained. With stability is maintained, then the pace of economic activity will be faster, and on the other hand the rate of inflation remained under control.
Maintaining economic stability, she also makes BI aggressive in lowering interest rates and the reserve requirement in 2016 respectively amounting to 150 basis points.
“If there is no stability, then room to grow fast to be open,” he said.
in short term, Indonesia is faced with two main challenges. First, the fiscal stimulus that has not significantly attract private investment, which is seen from the low private investment for non-building sector until the third quarter of 2016.
slowdown in private investment as well as the private sector is still a lot of consolidation and restructuring after exposed to the negative impact of slowdown economy in 2015.
the next challenge to the monetary policy transmission bank interest rates that have not been effective. With the reduction in the benchmark rate by 150 basis points, interest rates on new loans fell by 60 basis points, while the deposit rate by 108 basis points.
“Monetary policy to banks have not transmit evenly,” he said.
Bank Indonesia predicts economic growth next year will be in the range of 5.0 to 5.4 percent, after in 2016, Indonesia’s economy is expected to grow 5.0 percent. (Ant.)
mpi-update.com
0 Response to "BI Governor; 2017 Monetary Policy Not Stress Stability"
Post a Comment