BI to undergo accommodative macroprudential policy

BI to undergo accommodative macroprudential policy

ILLUSTRATION (ANTARA /Akbar Nugroho Gumay)

Jakarta,  (ANTARA News) - Bank Indonesia (BI) will undergo an accommodative macroprudential policy and strengthen the payment system policy to expand economic financing.

"Coordination with the Government and other relevant authorities has been increased in order to maintain economic stability and economic growth momentum," BI communications director Agusman said in a statement here on Friday.

He said that the global economy continues to slow down, with less uncertainty in the global financial market.

The US economic growth has slowed down due to limited fiscal stimuli, structural labor market issues, and reduced market confidence.

Europe`s economic growth slowed down due to the ongoing economic and financial structural issues, sluggish exports and uncertainty plaguing the Brexit, among other issues.

In China, economic growth has been hampered in line with downcast exports due to the trade tension with the US and lower domestic demand due to the ongoing deleveraging process.

Congruent with the uncertain global economic outlook, international commodity prices are sliding, including the global oil price and monetary policy normalization in advanced economies that has relatively moderated, with less uncertainty in the global financial market, he remarked.

Accordingly, the US Federal Reserve is now expected to ease the pace of gradual Fed Fund Rate (FFR) hikes and pare back planned balance sheet reductions.

The recent updates in the global economy and finances have generated challenges in exports, yet also increased foreign capital flows to developing economies, including Indonesia.
Reporting by Azis Kurmala