Archive

Indonesia M2 Money Supply 3.4% y-o-y in Oct-23

- Indonesia's M2 Money Supply grew by 3.4% year-on-year in October 2023, marking a decline from the previous growth rate of 6.0%.
- The current growth rate is significantly below both the one-year average and the long-run average, indicating a notable deviation from the usual trend.

Indonesia Policy Rate 6.0% (consensus 6.0%) in Nov-23

• Bank Indonesia’s decision to maintain the BI7DRR at 6.00%, in alignment with economic consensus, balances domestic economic stability with global economic challenges, particularly the high global uncertainty and the impact on the Rupiah.
• Inflation control within the target range and Rupiah exchange rate stability are pivotal for future policy decisions, with a close eye on global economic developments and their spillover effects.
• The use of innovative monetary instruments, including SRBI and SVBI, will be key in Bank Indonesia’s future strategies, focusing on money market deepening and attracting foreign capital inflows to support economic resilience.