Indonesia’s inflation falls to 3.2% in August, marking fourth consecutive monthly decline
This consistent decline is credited to a combination of stabilized food prices, a strengthening rupiah, and effective monetary policies by Bank Indonesia.
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This consistent decline is credited to a combination of stabilized food prices, a strengthening rupiah, and effective monetary policies by Bank Indonesia.
With global palm oil prices already under pressure from increased supply and sluggish demand, the strengthening rupiah is squeezing profit margins further.
The forecasted surge in rupiah bond issuance is seen as a strategic move to capitalize on current economic conditions and to secure funding for various growth and development projects.
Sri Mulyani Indrawati, on Tuesday, declared that the rupiah exchange rate is expected to remain stable, with a notable upside bias.
When questioned about the easing of Bank Indonesia, the governor exclaimed that it would depend on the inflation rate, economic growth, and how quickly the rupiah can strengthen. Governor Perry Warjiyo also said, “We will remain patient to monitor domestic and global conditions.”