Bank Indonesia to Announce Monetary Policy

Bank Indonesia to Announce Monetary Policy

Assessment

Interactive Video

Business

University

Hard

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The video discusses the expectation that Bank Indonesia will maintain its key interest rate at 7.5%, a level unchanged since November 2013, to manage inflation and fiscal deficit. Despite controlled inflation, challenges remain due to potential fuel price hikes and external factors like US Fed policy. The rupee's exchange rate and stock market outflows are influenced by political uncertainties. Economic growth is predicted to face challenges, with GDP slowing since 2011, as high interest rates are maintained to prevent capital outflows and combat inflation.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What might cause Indonesia to revise its interest rate?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential impacts of the new government's policies on the economy?

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