Bank Indonesia Keeps Key Interest Rate (BI Rate) at 7.50% in July 2014

 
Inflation in Indonesia:

Month	Monthly Growth           2013	Monthly Growth           2014
January	1.03%	1.07%
February	0.75%	0.26%
March	0.63%	0.08%
April	-0.10%	-0.02%
May	-0.03%	0.16%
June	1.03%	0.43%
July	3.29%
August	1.12%
September	-0.35%
October	0.09%
November	0.12%
December	0.55%
Total	8.38%	1.99%

 

	Inflation Rate       June 2014	Inflation Rate   Calender 2014	Inflation Rate   year-on-year
General	0.43	1.99	6.70
- Core	0.25	1.88	4.81
- Administered Price	0.45	2.37	13.47
- Volatile	1.06	2.22	6.74

 

	2008	2009	2010	2011	2012	2013
Inflation (annual percent change)	9.8	4.8	5.1	5.4	4.3	8.4

^{Source: Statistics Indonesia}

Furthermore, the maintained interest rate environment is expected to have a positive impact on the country’s current account balance. Since 2011, Southeast Asia’s largest economy has had to cope with a serious current account deficit (which is a sign of weakness in the eyes of investors). The latest released trade data show a USD $69.9 million trade surplus in May 2014, after a disappointing USD $1.96 billion deficit in the previous month.

Indonesia Balance of Trade (in million US dollar):

Later today, an in-depth article about Bank Indonesia’s stance on economic developments in Indonesia will be published.

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