Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

MACROECONOMIC ANALYSIS SERIES: BI Board of Governor Meeting, March 2022

The global economy has recently been in a condition that is not ideal. Uneven domestic economic recovery, ongoing supply chain disruptions, and energy shortages in various parts of the world have created serious challenges to the economic recovery process. The outbreak of the Russian-Ukrainian war exacerbated global economic problems, especially inflation, which triggered increases in energy and food commodity prices. At the global level, the economy is faced with health problems and the implications of war at the same time. On the domestic side, fortunately, the impact of recent developments at the global level has been relatively controlled to date. However, the risk of inflation in the future as the Ramadan period approaches, relaxation of restrictions
social, rising energy and food prices will pose a big challenge to regulators, especially BI. Therefore, the benchmark interest rate should be maintained at 3,50% this month.

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